Shared Services

Shared Services are centrally organized services that one unit provides for several divisions or companies within a group – in IT, for example, identity services, network, service desk or central platforms. Instead of each division operating its own solutions, services are bundled, provided centrally and used jointly.

Characteristic features are defined services with units, quality levels and responsibilities, documented in the Service Catalog, as well as financing via allocations or internal charging based on transparent keys such as user numbers or transactions. The objectives are economies of scale, standardization and quality. The model extends beyond IT, for example to HR or finance functions; the overarching approach is described by Enterprise Service Management.

Shared Services must be distinguished from Shared Costs: the latter refer to a cost category, whereas Shared Services describe an organizational model. Because Shared Services often form the largest blocks of overhead costs, clear units and allocation keys determine whether their allocation is accepted.