Shared Services are the convergence and streamlining of an organisation’s functions to ensure that they deliver the organisation the services required of them as effectively and efficiently as possible. This often involves the centralising of back office functions such as HR and Finance but can also be applied to the middle or front offices. A key advantage of this convergence is that it enables the appreciation of economies of scale within the function and can enable multi function working (e.g. linking HR and Finance together, where there is the potential to create synergies). A large scale cultural and process transformation is often a key component of a move to Shared Services. This transformation often results in a better quality of work life for employees
Shared Services are more than just centralisation or consolidation of similar activities in one location. Shared Services mean running these service activities like a business and delivering services to internal customers at a cost, quality and timeliness that is competitive with alternatives.
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