Shared services is widely employed in many industry sectors and is gaining increasing traction as organizations, particularly those subject to continuing cost pressures look for ways to control costs. For example, in December 2012 the UK government set out its next generation shared services strategy to enable savings of £400-600m per year. Shared services take many forms, but regardless of the type of shared service, when properly executed it can deliver a range of benefits. Benefits can result from economies of scale or scope, the ability to negotiate from a stronger consolidated base and through adoption of streamlined, common business processes. A shared services model can also enable groups to share knowledge and best practice as well as the services themselves. However, these benefits must be balanced with the flexibility clients (internal or external) require.
Shareable services typically include corporate service processes such as HR, procurement and finance and accounting. Sharing of enabling capabilities typically include IT infrastructure, workflow, data repositories as well as domain-specific expertise and resources. Viewed as business services, they can be defined in terms of outcomes and external dependencies using a combination of deliverables, processes, roles, and skills. This way EAs can help position the shared services within the organization’s architectural construct in terms of service provision to other functions within the business or to external partners or customers.
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