The Shared Service Utility:
Leveraging Knowledge and Scale
A key advantage of a shared service utility is that customers can benefit from the economies of scale that would not accrue to individual customers. With the scalability of its infrastructure, CAPS can process multiples of present transaction volumes at a marginal cost increase. This fixed cost base and high volume capability implies that customers can operate at the low cost/high volume end of the cost curve normally inaccessible to all but the largest players in the market.
As an example, at present in the CLS business line, volumes in CAPS provide its customers with unit costs that are competitive compared to these industry leaders.