What Is a Shared Service Agreement

There are several potential ways to find information about shared services, such as.B. state university extension offices, state government local government offices, local and national professional associations, and 2 government councils. Feasibility study. Clear identification of the potential costs, benefits and risks of a proposed agreement. Data collection may be necessary for more complex businesses. Governments need to determine the return on investment as much as possible, both financially and qualitatively. The main points to be taken into account in the feasibility phase include objectives and targets, tangible and intangible benefits, potential obstacles (political, economic, financial, human, legal, social or scale). There are reports that the UK government`s shared service centres have not made savings, such as the Department for Transport`s plan, which has been described by Parliament`s audit committee as “incredible incompetence”. [11] There are two arguments in favor of service sharing:[1] The “less common resource” argument and the “efficiency through industrialization” argument. The first is “obvious”: if you have fewer managers, computer systems, buildings, etc.; If you use fewer resources, costs will be reduced.

The second argument is “efficiency through industrialization.” This argument assumes that efficiency gains result from specialization and standardization, which leads to the creation of “front” and “back” desks. The typical method is to simplify, standardize, and then centralize, using an IT “solution” as a means. It`s important to remember that the more flexible you make your agreement, the more versatile the agreement will be. When drafting the agreement, don`t make it too narrow and specific. For example, you do not need to reduce certain types of devices used or the specific services to which you consent. An agreement that is too specific locks you up and pushes you into a corner to comply with the specific conditions. In the event that you wish to release services that were not taken into account during the drafting of the contract, you will remain bound by the restrictions already formulated. It is sometimes argued that there are three basic variants of the location of a common service, including: In the Republic of Ireland, the health service at national level has been reorganised by a number of regional health authorities into a single national structure, the Health Services Executive.

Within this structure, there will be a joint national service organisation based on the model developed in the former Eastern Health Shared Services, where procurement, human resources, financial and ICT services have been provided to health authorities in the eastern region of Ireland on a business-to-business basis. Traditionally, the development of a shared services organization (SSO) or a shared service center (SSC) within an organization is an attempt to reduce costs (often tried by economies of scale), standardized processes (through centralization). A global Service Center Benchmark study[6] conducted by the Shared Services & Outsourcing Network (SSON) and Hackett Group, which surveyed more than 250 companies, found that only about a third of all participants were able to achieve cost savings of 20% or more with their SSOs. At NASA, the move to a shared services model in 2006 resulted in savings of nearly $20 million per year. In addition, the organization`s NASA Shared Services Center is expected to save a total of more than $200 million by the end of 2015, according to NASA`s director of service delivery. [7] All governments involved must agree on what constitutes a regular frequency of monitoring (e.B holding monthly meetings of the original review committee or the new administrative committee to monitor progress and contract compliance), which should be monitored, how it is measured, what is monitored (e.B. client satisfaction, finance, employee performance, attitude and safety), communication of results (the format of the report may include support or media for the communication of results (e.B. Internet, Paper Reports, etc.) and the quality and quantity of the work performed.

The private sector has been moving towards shared services since the early 1980s. Large organizations such as BBC, BP, Bristol Myers Squibb, Ford, GE, HP, Pfizer, Rolls-Royce, ArcelorMittal and SAP operate it with great success. According to the English Institute of Chartered Accountants, more than 30 percent of U.S. Fortune 500 companies have set up a shared services center and report cost savings of up to 46 percent in their overall accounting functions. Also, don`t reinvent the wheel when writing your agreement. Use existing templates when creating your contract. There are many options you can use for your shared services contract. In the quarrelsome society in which we all live today, it is very important to have a solid agreement. The easiest way to legally approve a shared services agreement is to formulate it succinctly. A basic and short agreement makes it easier to put other public bodies on the same page. 5.

Ongoing monitoring. A joint service agreement should be treated as a contract and the terms and conditions should be monitored regularly to ensure that they are met. Large-scale cultural and process change can be a key part of the transition to shared services and can include layoffs and changes in work practices. It is claimed that transformation often leads to a better quality of life for employees, although there are few case studies to prove this [citation needed]. Companies that have centralized their IT functions have now begun to take a close look at the technology services that their IT departments offer to internal customers and assess where it makes sense to provide certain technology components as a shared service. E-mail and analytics operations were obvious candidates; Many organizations with document-intensive operations deploy analytics centers as a shared service. 4. Implementation. Continuity of service is of paramount importance to stakeholders.

For this reason, the transition must ensure seamless service delivery. In order to avoid the risk of sacrificing the quality of service, emphasis must be placed on appropriate training of the employees who provide the service. Key performance indicators, benchmarks or milestones should be set according to the service concerned. Governments should try to simplify processes for suppliers as much as possible to ensure good working relationships. It is necessary to decide how the means of providing administrative or support services are most effective. When setting up and operating a common service, calibration and measurement are considered by some to be a necessity. Benchmarking generally involves comparing service delivery with best-in-class services. The measurement is based on agreed key performance indicators (KPIs). Although the number of SELECTED KPIs varies widely, it is generally accepted that fewer than 10 carefully selected KPIs give the best results. [Citation needed] This not only reaps the benefits of wage arbitration, but also appreciates the talents of certain economies in providing specific service offerings. .

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