Shared Services Agreement

If you are designing an agreement on common services, that is the best way to include the agreement. Instead of making it a two-way agreement with another party, make the agreement a n:n agreement or a multi-agency agreement. If you use a language such as „this agreement has been reached between the signed parties,“ you have the option of extending the number of jurisdictions that can join the agreement. 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. 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.).

Traditionally, the development of a shared service organization (SSO) or shared service centre (SSC) within an organization is an attempt to reduce costs (often tempted by economies of scale), standardized processes (by centralization). A baseline evaluation study by the Global Service Centre[6], conducted by the Shared Services and Outsourcing Network (SSON) and hackett Group, which surveyed more than 250 companies, showed that only about one-third of participants were able to achieve cost savings of 20% or more from their SSo. At NASA, the move to a shared services model in 2006 represents nearly $20 million in savings per year. In addition, NASA`s Shared Services Center is expected to save more than $200 million by the end of 2015, according to NASA`s Director of Service. [7] On August 4, 2011, the Canadian government 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] It is important to remember that the agreement will be all the more versatile as you will be flexible in your agreement. Don`t do it too tightly and specific when drawing up the agreement. For example, you don`t have to limit certain types of devices used or the specific services you provide. An agreement that is too specific will block you and will corner you to meet the specific conditions. In case you wish to release services that were not taken into account in the development of the agreement, you will stick to the restrictions already designed.

There are two arguments in favour of service sharing:[1] The „minus a common resource“ argument and the „efficiency through industrialization“ argument. 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.“