Shared Service Agreement

April 12, 2021 10:09 am Published by Leave your thoughts

Another important piece of advice for developing a common services agreement is the use of easy-to-understand language. It is not necessary for a designed agreement to include detailed legal information to be confirmed in court. Use simple language that could be understood by a fifth grader. As long as the terms and languages used in the agreement describe the terms and terms of the agreement, do not complicate matters. You`ll find another good example of a well-done agreement on common services under Google`s terms of use. Public services are the provision of a service by a part of an organization or group in which that service was previously found, in more than part of the organization or group. Thus, the financing and replenishment of the service is shared and the supply service effectively becomes an internal service provider. The key here is the idea of “dividing” within an organization or group. This authorization must, in principle, include collective responsibility for the results by the unit from which the work is migrated to the supplier.

On the other hand, the supplier must ensure that the agreed results are provided on the basis of defined measures (KPIS, costs, quality, etc.). A broad cultural and process transformation can be a key part of the transition to shared services, including layoffs and changes in work practices. It is argued that transformation often leads to a better quality of working life for workers, although there are few case studies to support this situation. Internal customers must then indicate their own service requirements. Suppliers must meet their requirements and suppliers will have their performance evaluated on the basis of easily measurable specific criteria. If properly executed, the shared services approach takes advantage of the benefits of centralization and combines it with decentralization. The UK government is working on a comprehensive plan to implement the benefits of common services as part of a central efficiency research, which follows the Gershon`s assessment. The firm`s office has set up a team specifically to accelerate and consolidate the reception and development of the strategy for all government services. The potential savings from this transformation in the UK public sector were initially estimated by the firm`s office at $1.4 billion per year (20% of the estimated cost of human and financial functions).

In its November 2007 report,[10] the National Audit Office (UK) indicated that the $1.4 billion did not contain a clear cost base and contained several uncertainties, such as the initially required expenditures and the timing of savings. It is important that the common service unit be able to compete with other external suppliers. Business sectors must be subject to market discipline. You should also be able to search for support services that meet the same standard. In order for business entities to gain a competitive advantage, best practices are available and the corporate culture is outdated. On August 4, 2011, the Government of Canada introduced Shared Services Canada to strengthen its data centres, networks and e-mail systems. [13] This follows a trend towards centralization of computer services, followed by the provinces of British Columbia, Quebec and Ontario, as well as the federal government of the United States of America and in some states such as Texas. PriceWaterhouseCoopers recommended the integration of government computing centres in a report commissioned by Public Works and Government Services Canada and published in December 2011. [14] There are two arguments in favour of service sharing:[1] The “less than a common resource” argument and the argument “efficiency through industrialization”. 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.”

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