What is a shared service?

Shared services refer to the consolidation of business operations that are used by multiple parts of the same organization. Typically, functions like human resources, finance, IT, or procurement are centralized to improve efficiency, reduce costs, and ensure consistency across the company. By pooling resources and standardizing processes, organizations can streamline workflows and focus more on their core activities. Shared services can be managed internally or outsourced to third-party providers. This model is commonly used in large organizations looking to optimize their support functions.