Shared Services Agreement Purpose

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. For the establishment and operation of a common service, calibration and measurement are considered by some to be a necessity. Performance calibration is usually the comparison between performance and the best in the class. The measurement is carried out using agreed key performance indicators (KPIs). Although the number of KPIs selected is highly variable, it is generally accepted that fewer than 10 carefully selected KPIs give the best results. [Citation required] 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] When you reach an agreement on common services, the best way to include the agreement is to include it. 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. The difficulty of this argument lies in the fact that coastal and offshore proximity models are generally associated with the outsourcing model and are difficult to resign themselves to the notion of in-house shared service, unlike an outside service. It is clear that the use of offshore facilities by a government department is not an example of common services. A shared services contract is a model for providing enterprise support. It works through consolidation and the combination of services between business units and headquarters into a separate entity based on market-like principles. Read 3 min The BRITISH government, in a central quest for efficiency, following the Gershon Review, is developing an overall plan to achieve the benefits of shared services. 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. If you are an organization that wishes to share services within the Organization or with other organizations, you must sign a joint service contract. Download here a template for the common services agreement! The agreement is reached between the parties who agree to share the funds. There should be at least two parties involved. If the organizations concerned have subsidiaries, the agreement should also indicate whether it also applies to subsidiaries.

This entry was posted in Uncategorized by admin. Bookmark the permalink.