10 Things You Need to Know About Shared Services

~ Glenn Remoreras

  1. Shared Services is the outsourcing of essential business functions to a centralized support organization.
  2. Most successful Shared Services run its organization as a business, providing efficient and effective services at competitive prices to its internal customers.
  3. Shared Services relies on an integrated set of electronic business processes, applications, information and technologies usually anchored in a major piece of purchased enterprise resource planning software.
  4. Shared Services implementation requires significant executive management sponsorship.
  5. The most common essential business support functions outsourced to Shared Services are Human Resources, IT, Finance, Procurement, Office Services and Legal.
  6. Shared Services focuses on value improvement more than cost reduction and on deliverables more than activities. Shared Services values customer service and alignment.
  7. Shared Services uses Service Level Agreements (SLA) to establish an accord with internal customers. SLA quantifies the target quantity, quality, and cost of services in a period of time.
  8. Shared Services makes use of benchmarking and measurement of strategic, tactical and operative Key Performance Indicators to drive incremental performance improvement.
  9. Shared Services locations can be on-shore, near-shore or off-shore although near-shore and off-shore are more associated to outsourcing.
  10. The value of Shared Services for an organization grows over time – from short-term to medium-term benefits of cost reduction and reengineering for productivity enhancement, to long-term continuous improvement and integrated strategic service delivery.

Shared Services

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Published by Glenn Remoreras

Glenn is a seasoned business leader with international experience and a strong track record in senior IT leadership. He has led innovation, business integration, and digital transformation initiatives that drive growth and deliver enterprise value. Glenn recently joined Breakthru Beverage Group as EVP and Chief Information Officer. Previously, he served as Global CIO at Mark Anthony Group and, before that, as Vice President of IT for the Beer Division at Constellation Brands. Glenn began his IT career at CEMEX Inc., where he held various leadership roles across Asia Pacific, Europe, Mexico, and the United States. He is also a Board Member Emeritus of the BRM Institute and has held several volunteer leadership positions there, including Chair of the Knowledge Council and Chair of the Executive Council.

6 thoughts on “10 Things You Need to Know About Shared Services”

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  5. great article , that is the way to have result into the areas

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