Shared services can deliver efficiencies and improve both effectiveness and the employee or customer experience by standardising, simplifying and consolidatingservice provision. They can also provide opportunities for investment, e.g. in new systems, which would not otherwise be affordable.
Shared services often begin with corporate services, e.g., IT, HR, Finance; however, possibilities exist across all operational support and front line services. The shared services model has scalability; an organisation procuring new IT hardware may choose to leverage more commercial benefit by procuring its hardware requirements for its network of offices rather than a single office. At the other end of the scale an organisation may select to work with other organisations to jointly procure common services through an external company.
“Experience from the private sector shows that typically corporate shared services can deliver efficiencies of between 10% and 30%.”
Shared Services is more than just centralisation or consolidation of similar activities in one location. It is the convergence and streamlining of similar functions within an organisation, or across organisations, to ensure that they are delivered as effectively and efficiently as possible. In a Shared Services model, these service activities will be run like a business, delivering services to internal/external customers at a cost, quality and timeliness that is competitive with alternatives.
Shared services delivers by seizing economies of scale and by standardising and consolidating core processes. There are many different forms of shared services :
- Single function in-house: a single function consolidating and centralising its services
- Multi function in-house: an organisation consolidating and centralising a number of core services such as HR, finance and procurement
- Co-opt model: two or more organisations collaborating to operate shared services for certain common processes
- Joint venture model: a joint venture shared service legal entity between an organisation and a third party provider
- Outsourcing model: the outsourcing of shared services to a third party provider who takes full responsibility for managing and operating the service
Our approach – outperform the sector
Concept Gemini is able to help clients by using a unique combination of fact-based insight together with benchmarking data and sophisticated modelling techniques to advise on the best shared services approach for each organisation. This in turn allows clients to set and communicate a coherent strategy; optimise selection of sourcing routes; leverage any shared services investment enhancing returns identified within the business case and ensure that the value derived from shared services is transparent.
“over 90% of organisations have confirmed that shared services have met or exceeded their expectations”
Our expertise and capability – identifying efficiency benefits
It is becoming more important than ever for companies to innovate, to manage their workforces and to serve customers as effectively as possible. Shared services will continue to be an important driver of success in a changing world. Concept Gemini has advised clients on numerous shared services matters from single function in-house to outsourcing formats at the approach, benchmarking and implementation stages.