2B2
Rationalizing Shared Services
Key role(s)
Objectives
Implementing a strategy to rationalize shared services between business lines
Benefits
Improving the quality of common services while reducing costs
The main idea is to stop reinventing the wheel by having similar services in different BUs. Rationalizing services common to several applications around Shared Services is a good way to avoid duplication of efforts and costs.
However, the following questions will also have to be answered:
- Who is going to take care of it, and
- How will its services be chargebacked to the BUs that use them?
But no matter how complex the resulting organization may be, the advantages are multiple.
Among other things, it allows to:
- Factorize development and maintenance efforts as well as the optimization of common services
- Increase predictability of expected service levels and associated costs
- Allocate the costs of a shared service to the different BUs that use it
- But also benefit from economies of scale thanks to increased volume (in general, the higher the volume, the lower the unit costs).
In short, the advantage of shared services is better quality of service at a lower cost.
