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

• A. Unanticipated power shifts
• B. Enhanced local autonomy
• C. Better customer service
• D. Improved job satisfaction

Answer: (A)

A shared-service center centralizes back-office and support functions to serve multiple parts of the organization. While this can drive efficiency and consistency, it often changes the balance of power. When decision-making and control move into a centralized SSC, local units may lose some say in how processes are run, leading to unanticipated shifts in influence and authority. This shift can generate resistance, politics, and tension as local managers feel their autonomy is diminished or their needs are not weighed as heavily as centralized priorities.

Enhanced local autonomy goes against what an SSC is designed to do, so it isn’t a disadvantage; it’s typically not aligned with SSC goals. Better customer service and improved job satisfaction are commonly cited benefits of a well-implemented SSC, though they can vary by context. The key issue identified here is how centralized control can unexpectedly reallocate power within the organization, which is the core reason it’s considered a disadvantage.