The shared services market involves a business consolidating its operational functions to enhance service delivery across the corporation along with its various business units. This model operates as a business inside a business. It leverages a structured infrastructure to provide higher value services. Usually, this includes areas like human resources and supply chain logistics.

By bringing these services together under a centralized management structure, companies can achieve cost savings and efficiencies that are often elusive in decentralized operations. The shared services market not only benefits the organization overall but also offers employees important opportunities for career growth and professional training.

The Benefits

The shared services market size is expanding rapidly. It is thanks to the numerous benefits that it provides for businesses.

1.      Reduce cost

One of the most evident advantages is the potential for time and cost savings. By consolidating multiple functions into a single service provider or organization, businesses can frequently achieve savings from increased production and minimize redundant efforts.

2.      Enhance service

Centralizing specific functions can facilitate the monitoring and management of performance. At times when services are isolated or spread across business units, tracking progress and pinpointing areas for improvement can be challenging. Standardized processes and tools for service management contribute to enhanced service delivery.

3.      Improve control

Shared services facilitate data centralization. It enhances analytics and reporting capabilities. This approach also improves compliance and empowers the organization to make better-informed decisions.

4.      Greater communication

By eliminating barriers between departments and fostering information sharing, shared services facilitate better collaboration and communication between employees or departments.

5.      Improve flexibility

Organizations can leverage shared services for the flexibility to scale their operations up and down as necessary. It minimizes the need for major structural changes. Additionally, in the event of mergers and acquisitions, it can ease the integration of two organizations. This helps to merge operations and capture synergies.

6.      Enhance productivity

Having everyone on the same platform or utilizing a unified service provider enhances the ease of sharing information and collaborating on projects. In the end, the advantages of adopting shared services can lead to greater operational efficiency and effectiveness for businesses.

The Applications

The shared services market is versatile in that it can see application in various sectors.

1.      Human resources

The most prevalent example is human resources. By centralizing HR functions within a single department, organizations can realize efficiencies in processes like employee onboarding and payroll processing.

2.      Finance

A popular instance is in finance. By integrating their financial activities into a shared service model, organizations can typically cut expenses and improve the efficiency of accounting and other financial tasks.

3.      Technology

Many organizations decide to integrate their IT tasks into this model. The strategy can boost the quality of service offered to IT customers and help decrease total IT costs.

4.      Procurement

Consolidating procurement can lead to both improved service and cost savings for organizations. Centralized procurement allows businesses to leverage volume discounts and enhance service delivery.

5.      Facilities management

Facilities management serves as a common illustration of C&SS. By integrating these functions, businesses can enhance efficiency in aspects like maintenance and janitorial services.

6.      Marketing and communications

This model allows businesses to better oversee and streamline requests for marketing and communications. This not only enhances efficiency but also fosters standardization and minimizes redundant efforts.

7.      Project management

Organizations that utilize shared services frequently have teams dedicated to project management. Their engagement in multiple cross-functional initiatives equips them to supply robust project managers to assist various departments within the organization.

8.      Data analytics

Data analytics has emerged as a relatively recent example. Businesses are relying on data to inform their decision making. By centralizing data into a single repository organizations can more effectively analyze it and uncover trends.