What Is A Shared Services Agreement

There are two arguments in favour of service sharing:[1] The « minus a common resource » argument and the « efficiency through industrialization » argument. The first is « obvious »: if you have fewer managers, computer systems, buildings, etc. If you use fewer resources, costs will be reduced. The second argument is « efficiency through industrialization. » This argument assumes that efficiency gains are due to specialization and standardization, which leads to the creation of front and back offices. The typical method is to simplify, standardize and then centralize using a computer solution as a means. A broad cultural and process transformation can be a key part of the transition to shared services, including layoffs and changes in work practices. It is argued that transformation often leads to a better quality of working life for workers, although there are few case studies to support this situation. Public services are the provision of a service by a part of an organization or group in which that service was previously found, in more than part of the organization or group. Thus, the financing and replenishment of the service is shared and the supply service effectively becomes an internal service provider. The key here is the idea of « dividing » within an organization or group. This authorization must, in principle, include collective responsibility for the results by the unit from which the work is migrated to the supplier. On the other hand, the supplier must ensure that the agreed results are provided on the basis of defined measures (KPIS, costs, quality, etc.).

It is sometimes argued that there are three basic location variants for a common service, including: Shared services resemble the collaboration that can take place between different organizations such as a hospital trust or a police unit. Neighbouring trusts can, for example. B, decide to work together by merging their HR or IT functions. On August 4, 2011, the Government of Canada introduced Shared Services Canada to strengthen its data centres, networks and e-mail systems. [13] This follows a trend towards centralization of computer services, followed by the provinces of British Columbia, Quebec and Ontario, as well as the federal government of the United States of America and in some states such as Texas. PriceWaterhouseCoopers recommended the integration of government computing centres in a report commissioned by Public Works and Government Services Canada and published in December 2011. [14] Companies that have centralized their IT functions have begun to carefully examine the technology services their IT departments provide to their internal customers and to assess where it is useful to provide certain technology components as a common service. E-mail and scanning operations were obvious early candidates; Many organizations with document-intensive operations provide scanning centers as a common service. The Northern Ireland Public Service (NICS) has set up common services for a number of services and functions.