Shared services
Shared services consolidate recurring support activities for several organisational units into a service operation. The aim is to combine consistent processes and specialist capacity while serving internal customers. Services can include payroll, transaction accounting or procurement administration. Governance should define service expectations, responsibilities, performance measures and exception handling. A shared operation can be managed internally; it is not inherently an external outsourcing contract.
Worked example
Three divisions replace separate supplier-payment teams with a shared centre using common controls and agreed turnaround times. Divisions still approve their purchases and resolve business-specific exceptions under clearly assigned responsibilities.
Common mistake
Do not assume centralising a process automatically improves it or that shared services eliminate local accountability. Standardisation must still meet the units’ legitimate needs.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | BT | Direct | September 2026–June 2027 |
| ACCA | SBL | Direct | September 2026–June 2027 |
| FIA | FBT | Direct | September 2026–June 2027 |