• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 4/25/2014

China - Benefits on establishing a shared service center 

April 25: Entities doing business in China may ask whether it make sense to consider setting up a shared service center in China without a robust business case.

Often the initial business case does not appear to be compelling. In the short term, setting up an shared service center may result in increased costs, rather than delivering immediate cost savings.

However, shared services can provide a multitude of strategic benefits over the long term—benefits that ultimately outweigh the short-term costs. Many companies have reached this conclusion and have moved to setup a shared service center in China.

The KPMG member firm in China has prepared a report that: (1) examines the value proposition of shared service centers and practical considerations of a shared service center in China; and (2) provides insight on how to develop a strong business case.

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