Shared-services

/ˈʃɛrd ˈsɜrvɪsɪz/ noun

Definition

A business model where common functions like HR, IT, finance, or procurement are consolidated into a single unit that serves multiple divisions or departments within an organization. This approach aims to reduce costs, improve efficiency, and standardize processes across the enterprise.

Etymology

Combines 'shared' from Old English 'scearu' meaning 'division' or 'portion' with 'services' from Latin 'servitium' meaning 'assistance.' The business concept emerged in the 1980s as large corporations sought to eliminate duplicate functions while maintaining service quality through specialization.

Kelly Says

Shared services is like having one amazing chef cook for the entire apartment building instead of everyone making mediocre meals separately - you get better quality, lower costs, and more variety. The trick is that this 'chef' must be so good that each 'apartment' (business unit) feels they're getting personalized service despite sharing resources!

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