Shared Services

Writers' FIrst Review Draft:    (2WXD)

Term    (2XCT)

Shared Services    (2XCU)

Origin/Source for Inclusion of the Term    (2XCV)

OMB Enterprise Architecture Assessment Framework Version 1.5    (2XCW)

OMB Context Definition    (2XCX)

Reference/URL OMB Context Definition    (2XCY)

Business Definition    (2XCZ)

Shared services refers to the consolidation and sharing of services by different units within an organization.    (2XD0)

Reviewer Comment: Shared Services are architectural elements (business processes and/or technology components) that are used by multiple organizations within the enterprise.    (2XD1)

Reference/URL for Business Definition    (2XD2)

Wikipedia, the free encyclopedia, Shared Services, http://en.wikipedia.org/wiki/Shared_services; Internet; accessed 23 June 2003.    (2XD3)

Reviewer Comment: As the source for this term is the OMB assessment framework, why are we not using its definition of this term or some form of it for at least the business definition?    (2XD4)

Technical Definition    (2XD5)

Shared services, a form of "internal outsourcing," enables corporations to achieve economies of scale by creating a separate internal entity within the company to perform specific services, such as payroll, accounts payable, travel and expense processing. A typical shared services initiative takes advantage of enterprise applications and other technological developments, enabling the company to achieve further improvements to quality in processes, such as finance, accounting, procurement, IT, and human resources. At the core of shared services is the idea that new technologies offer businesses the opportunity to 1) make better use of scarce skills, 2) provide information and services more efficiently, and 3) reduce the cost of administration.    (2XD6)

Reference/URL Technical Definition    (2XD7)

"BPO Terminology: Organizing the Chaos"; http://www.ebstrategy.com/bpo/basics/terminology.htm; Internet; accessed 24 June 2005.    (2XD8)

Context Definition 1    (2XD9)

Architectural elements (business processes and/or technology components) used by multiple organizations within the enterprise.    (2XDA)

Reference/URL Context Definition 1    (2XDB)

OMB Enterprise Architecture Assessment Framework Version 1.5, May 2005 http://www.whitehouse.gov/omb/egov/documents/OMB_Enterprise_Architecture_Assessment_v1.5_FINAL.pdf    (2XDC)

Context Definition 2    (2XDD)

When companies implement shared services it means they are implementing a new management model for internal services that includes the following key components: products/services, charge-backs, agreements, management information, and accountability.    (2XDE)

Reference/URL for Context Definition 2    (2XDF)

Walter W. Simpson, III and Samuel T. Poston, "Shared Services: Top Ten Questions"; http://www.bcfm.com/financial_manager/Shared%20Servicesdj01.htm; Internet; accessed 24 June 2005.    (2XDG)

Context Definition 3    (2XDH)

Reference/URL for Context Definition 3    (2XDI)

See Also Related Terms    (2XDJ)