EVALUATING IN-HOUSE COMPLIANCE SHARED SERVICE CENTRES

R&C: What are the key strategic drivers behind choosing an in-house compliance shared service centre (SSC) over outsourcing or decentralised models, particularly in regulated industries?

Wellens: Some of the strategic advantages of an internal shared service centre (SSC) are that the compliance processes and controls are in-house, and therefore there is knowledge retention within SSC and expertise can be built over time. This contrasts with outsourced service providers where knowledge and best practices may not be shared or lost when a contract needs to be changed with the outsourced provider. Another advantage is that sensitive compliance data remains in-house, minimising reputational risk. The advantage of an SSC is that there is more standardisation, better headquarters visibility on compliance activities and reduced costs. Local or decentralised compliance officers are close to and understand day-to-day business operations, understand local compliance risks related to new business models, and understand local laws and local enforcement. Therefore, they can design – considering context, culture and local management dynamics – more effective compliance processes and controls than a standard ‘across the board’ SSC solution for all subsidiaries.

Badoino: The decision to establish an in-house compliance SSC is not the starting point but rather the next step after implementing an integrated assurance framework. Once governance, risk and compliance disciplines are aligned at the enterprise level – creating a single source of truth, shared standards and common ways of working – the SSC becomes the operational expression of that integration. In regulated industries, credibility with regulators and stakeholders depends on demonstrable ownership of compliance capabilities – something that outsourcing can easily dilute. An in-house SSC allows the organisation to maintain direct oversight of sensitive compliance data while ensuring consistent execution across markets. Ultimately, the SSC builds on the foundation of integration to deliver scale and specialisation – centralising operational excellence while embedding the organisation’s values and risk culture, which are critical for long-term resilience and regulatory confidence.

Jan-Mar 2026 Issue

Ethics and Compliance Switzerland

Novartis