A shared services center consolidates repeatable support activities for multiple business units into one governed delivery organization. It can be company-owned, outsourced or operated through a hybrid model.
Which functions are commonly shared?
- Finance and accounting
- Procurement operations
- Human resources administration
- Information technology support
- Customer or employee services
- Data and reporting
Why centralize services?
Centralization can standardize processes, improve control, consolidate expertise and reduce duplicate work. Benefits depend on adoption and process redesign, not only moving roles.
Shared services vs. BPO
Shared services describes a delivery model serving several internal units. BPO describes contracting work to an external provider. An outsourced shared-services operation can use both models.
What should the operating model define?
Document service scope, customers, funding, governance, service levels, decision rights, technology, locations and escalation. Business units need clear retained responsibilities.
How should performance be measured?
Track quality, cycle time, service levels, unit cost, adoption, controls and customer satisfaction. Savings should include transition and retained-organization costs.
