The difference between establishing a shared service unit and centralisation shared services include:
i. centralised services are located at corporate headquarters; shared services are located close to internal customers.
Ii centralised services are more efficient than shared services.
Iii centralised services are evaluated based on service adherence to service level agreements; shared services are evaluated based on budgets and corporate objectives.
A) i and ii
B) iii
C) i
D) i and iii

Question

Quizplus · Accepted Answer

Centralised services are typically located at corporate headquarters to consolidate operations and decision-making, whereas shared services are often situated closer to internal customers to better meet their specific needs. The efficiency comparison (ii) is not universally true, as the efficiency of centralised versus shared services can vary depending on the organization and its implementation. Evaluation criteria (iii) can also overlap between the two models, making it not a clear distinguishing factor.

The Difference Between Establishing a Shared Service Unit and Centralisation