Beyond Performance Management

26

SHARED SERVICES

What is this practice and how effective is it?

Shared services involve the shifting of multiple functions such as finance, information technology, research and development, human resources, and marketing (usually integrated within individual group businesses) to one or more shared services centers. Companies can locate these centers anywhere in the world but are increasingly placing them in low-cost countries such as India. We will examine the pros and cons of shared services and how best to implement them.

Alternative names and related topics: internal markets; outsourcing; offshoring

While decentralization of decision making can lead to significantly lower costs, there are areas of business that will be more efficient and ...