Shared Service Agreement Definition

Shared services are not limited to centralizing or consolidating similar activities on the same site. Joint services may mean that these service activities are carried out as a business and that services are offered to internal customers at quality costs and schedules that are competitive with alternatives. In the conflicting society in which we all live today, it is very important to reach a strong agreement. A shared services agreement is the easiest to legally approve if it is formulated as short and soft. A simple, short agreement facilitates access to other public bodies on the same side. 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. It is sometimes argued that there are three basic sites for a common service, whose private sector has been moving towards common services since the early 1980s. Large organizations such as the BBC, BP, Bristol Myers Squibb, Ford, GE, HP, Pfizer, Rolls-Royce, ArcelorMittal and SAP operate them with great success. According to the English Institute of Chartered Accountants, more than 30% of US Fortune 500 companies have implemented a shared service center and report cost savings in their general accounting functions of up to 46%. If you are designing an agreement on common services, that is the best way to include the agreement. Instead of making it a two-way agreement with another party, make the agreement a n:n agreement or a multi-agency agreement.

If you use a language such as « this agreement has been reached between the signed parties, » you have the option of extending the number of jurisdictions that can join the agreement. Internal customers must then indicate their own service requirements. Suppliers must meet their requirements and suppliers will have their performance evaluated on the basis of easily measurable specific criteria. If properly executed, the shared services approach takes advantage of the benefits of centralization and combines it with decentralization. Common services are similar to collaboration between different organizations, such as a hospital trust or a police force. Neighbouring trusts can, for example. B, decide to work together by merging their HR or IT functions. 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] A shared services contract is a model for providing enterprise support. It works by consolidating and combining services between business units and headquarters in a separate unit based on market-like principles.

Read 3 min Also, don`t reinvent the wheel when developing your contract. Use existing models when designing your contract. There are many options that you can use for your common services agreement.

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