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Shared services is an environment in which a company can absorb activities that support the principle processes of each of the company’s other business units, consolidating these activities into a principal operating unit.
Through this strategy, multiple existing business functions are concentrated into a new and semiautonomous business unit with a management structure geared toward the promotion of efficiency, creation of value, reduction of costs and the overall improvement of services for internal company customers, as if it was a business unit competing on the open market.
Shared service centers (SSCs) are increasingly utilized in public administrations with the principle objective of increasing the efficiency of public spending. To increase efficiency, however, there needs to be an improved amount of agility, economy and service delivery quality. The SSC must, therefore, become reliant on governance requirements that enable it to operate efficiently and effectively.
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