The provider, on the other hand, needs to ensure that the agreed results are delivered based on defined measures (KPIs, cost, quality etc.).
Shared services is similar to collaboration that might take place between different organizations such as a Hospital Trust or a Police Force.
This argument assumes that efficiencies follow from specialization and standardization – resulting in the creation of ‘front' and ‘back' offices.
[7] A large-scale cultural and process transformation can be a key component of a move to shared services and may include redundancies and changes of work practices.
It is claimed that transformation often results in a better quality of work life for employees although there are few case studies to back this up [citation needed].
To focus an organization on becoming world class with processes that deliver the highest levels of performance that are better than those of its peer group.
Large organizations such as the BBC, BP, Bristol Myers Squibb, Ford, GE, HP, Pfizer, Rolls-Royce, ArcelorMittal, and SAP are operating them with great success.
[9] The UK government under a central drive to efficiency following from the Gershon Review are working to an overall plan for realizing the benefits of shared services.
The Cabinet Office has established a team specifically tasked with the role of accelerating the take up and developing the strategy for all government departments to converge and consolidate.
The National Audit Office (United Kingdom) in its November 2007 report[10] pointed out that this £1.4bn figure lacked a clear baseline of costs and contained several uncertainties, such as the initial expenditure required and the time frame for the savings.
There are reports of UK government shared service centres failing to realise savings, such as the Department of Transport's project, described as 'stupendous incompetence' by the Parliament's Public Accounts Committee.
Many large organizations, in both the public and private sectors, are now considering deploying enterprise content management (ECM) technology as a shared service.