Which of the following is a disadvantage of using a shared-service center (SSC)?

• A. Depersonalization
• B. Increased personal engagement
• C. Faster decision-making
• D. Higher employee morale

Answer: (A)

Depersonalization is the main risk when functions are centralized in a shared-service center. By pulling many services into one unit, interactions can feel standardized and distant, with staff focused on process speed and consistency rather than building a personal, context-rich connection. This can lead to customers or employees sensing a lack of individualized attention, which can lower satisfaction and engagement. In contrast, the other outcomes are typically seen as advantages of SSCs: centralized delivery can enhance personal engagement only if teams are designed to tailor interactions, faster decision-making comes from streamlined processes and centralized data, and higher employee morale often results from clearer roles and improved efficiency.