Shared Services Agreement Explained

A shared services contract is a model for providing enterprise support. It works by consolidating and combining services between business units and head office in a separate unit based on market-like principles. Read 3 min It`s important to remember that the more flexible your chord, the more versatile the chord will be. Don`t do it too tightly and specific when drawing up the agreement. For example, you don`t have to limit certain types of devices used or the specific services you provide. An agreement that is too specific will block you and will corner you to meet the specific conditions. In case you wish to release services that were not taken into account in the development of the agreement, you will stick to the restrictions already designed. 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. Shared services are different from the outsourcing model, in which an external third party is paid to provide a service that was previously internal to the purchasing organization and which usually results in layoffs and reorganization. There is an ongoing debate about the benefits of shared services over outsourcing.

[2] [3] [4] [5] It is sometimes assumed that a joint venture between a government authority and a commercial organization is an example of a common service. The joint venture involves the creation of a separate legal entity (jointly owned by companies) that provides profits to its shareholders. 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] Many large companies, both public and private, are now considering using ECM (Enterprise Content Management) technology as a shared service. For the establishment and operation of a common service, calibration and measurement are considered by some to be a necessity. Performance calibration is usually the comparison between performance and the best in the class. The measurement is carried out using agreed key performance indicators (KPIs).

Although the number of KPIs selected is highly variable, it is generally accepted that fewer than 10 carefully selected KPIs give the best results. [Citation required] 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 localization variants for a common service, including: in the conflicting society, where we all live today, it is very important to have a solid agreement.