What is a shared services operating model?

What is a shared services operating model?

Shared Services is a business model that enables resources to be leveraged across an entire organization resulting in lower costs with agreed upon customer-service levels.

How does a shared services model work?

Shared services is the provision of a service by one part of an organization or group, where that service had previously been found, in more than one part of the organization or group. Thus the funding and resourcing of the service is shared and the providing department effectively becomes an internal service provider.

What are examples of shared services?

8 Examples of Shared Services

  • Human Resources. Business capabilities such as human resources are commonly run as a shared service.
  • Information Technology. Operational capabilities such as an internal IT department.
  • Help Desk.
  • Data Centers.
  • Project Management Office.
  • Information Security.
  • Tools.
  • Platforms.

What is HR Shared Service model?

Shared service model is an organisation of HR practice into activities organised in service centre (transaction based services), centre of expertise (transformation based services) and HR business partners (attached to the line organisation) (Ulrich, 1995). Mobility has historically been defined in a variety of ways.

What is the role of HR Shared Services?

Organisations use shared services as a way of organising their HR activities, typically concentrating administrative activities into a centralised and commonly shared function. The shared service model can help businesses reduce costs, avoid duplication of effort, and allow a greater focus on HR strategy.

What is shared business service?

Shared Services Definition “A shared service is a collaborative strategy in which a subset of existing business functions are concentrated into a new, semi-autonomous business unit that has a management structure designed to promote efficiency, value generation, cost savings and improved service for internal customers of the parent organisation, like a business competing in the open market” (Bergeron, 2003).

What is shared services and outsourcing?

Shared services is different from the model of outsourcing, which is where an external third party is paid to provide a service that was previously internal to the buying organization, typically leading to redundancies and re-organization. There is an ongoing debate about the advantages of shared services over outsourcing.