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Shared Services, Human Resources, HR, Costs, Quality

[HROA Essentials] Negotiating the shared services minefield

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27 Mar 2006 | (Thinking Point)

Moving to shared services has proved an increasingly popular model for HR departments looking to improve efficiency and reduce costs, but effective use of shared services requires careful planning. Angus Kidman identifies some of the key issues to consider.
 
At first glance, the HR department looks an obvious candidate for a shared services approach, since it provides a natural match to many of the key attractions of farming out entire administrative tasks to an external organization. “Benefits result from aggregated economies of scale or scope, the ability to negotiate from a stronger aggregate base and through adoption of streamlined, common business processes, particularly when significant simplification and standardization are involved,” says Gartner analyst Richard Harris.

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