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Method for provisioning shared organizational resources
Shared services is the provision of a service by one part of an organization or group, where that service had previously been found, in more than one part of the organization or group. Thus the funding and resourcing of the service is shared and the providing department effectively becomes an internal service provider. The key here is the idea of 'sharing' within an organization or group. This sharing needs to fundamentally include shared accountability of results by the unit from where the work is migrated to the provider. The provider, on the other hand, needs to ensure that the agreed results are delivered based on defined measures (KPIs, cost, quality etc. ).

Shared services is similar to collaboration that might take place between different organizations such as a Hospital Trust or a Police Force. For example, adjacent Trusts might decide to collaborate by merging their HR or IT functions. There are two arguments for sharing services: The ‘less of a common resource' argument and the ‘efficiency through industrialization' argument. The former is ‘obvious': if you have fewer managers, IT systems, buildings etc; if you use less of some resource, it will reduce costs. The second argument is ‘efficiency through industrialization’. This argument assumes that efficiencies follow from specialization and standardization – resulting in the creation of ‘front' and ‘back' offices. The typical method is to simplify, standardize and then centralize, using an IT 'solution' as the means. Shared services is different from the model of outsourcing, which is where an external third party is paid to provide a service that was previously internal to the buying organization, typically leading to redundancies and re organization. There is an ongoing debate about the advantages of shared services over outsourcing. It is sometimes assumed that a joint venture between a government department and a commercial organization is an example of shared services. The joint venture involves the creation of a separate legal commercial entity (jointly owned), which provides profit to its shareholders. Traditionally the development of a shared service organization (SSO) or shared service centre (SSC) within an organization is an attempt to reduce costs (often attempted through economies of scale), standardized processes (through centralization). A global Service Center Benchmark study carried out by the Shared Services & Outsourcing Network (SSON) and the Hackett Group, which surveyed more than 250 companies, found that only about a third of all participants were able to generate cost savings of 20% or greater from their SSOs. At NASA, the 2006 switch to a shared services model is realizing nearly $20 million of savings annually. Further, by the end of 2015, the NASA Shared Services Center is expected to save the organization a total of over $200 million, according to NASA's Director of Service Delivery. A large scale cultural and process transformation can be a key component of a move to shared services and may include redundancies and changes of work practices. It is claimed that transformation often results in a better quality of work life for employees although there are few case studies to back this up
Shared services are more than just centralization or consolidation of similar activities in one location. Shared services can mean running these service activities like a business and delivering services to internal customers at a cost, quality, and timeliness that is competitive with alternatives.

The private sector has been moving towards shared services since the beginning of the 1980s. Large organizations such as the BBC, BP, Bristol Myers Squibb, Ford, GE, HP, Pfizer, Rolls Royce, ArcelorMittal, and SAP are operating them with great success. According to the English Institute of Chartered Accountants, more than 30% of U. S. Fortune 500 companies have implemented a shared service center, and are reporting cost savings in their general accounting functions of up to 46%. The conventional accounting practice used to generate these figures is disputed however by management thinker Professor John Seddon, who argues that the measurement known as 'unit cost' tells you nothing about overall costs. Overall costs include 'failure demand', which is defined as a failure to do something or do something right for the customer.

The public sector has taken note of the benefits derived in the private sector and continues to strive for best practice. The United States and Australia among others have had shared services in government since the late 1990s. However, the failures of these projects are increasingly being reported by the press and exposed by opposition politicians.

The UK government under a central drive to efficiency following from the Gershon Review are working to an overall plan for realizing the benefits of shared services. The Cabinet Office has established a team specifically tasked with the role of accelerating the take up and developing the strategy for all government departments to converge and consolidate. The savings potential of this transformation in the UK Public Sector was initially estimated by the Cabinet Office at £1.4bn per annum (20% of the estimated cost of HR and Finance functions). The National Audit Office (United Kingdom) in its November 2007 report pointed out that this £1.4bn figure lacked a clear baseline of costs and contained several uncertainties, such as the initial expenditure required and the time frame for the savings. There are reports of UK government shared service centres failing to realise savings, such as the Department of Transport's project, described as 'stupendous incompetence' by the Parliament's Public Accounts Committee. The Northern Ireland Civil Service (NICS), has implemented shared services for a number of departments and functions. For example, IT Assist (the ICT Shared Service Centre) provides common infrastructure and desktop services to NICS staff in the office, at home or when mobile working.

The government of Canada instituted Shared Services Canada on August 4, 2011, with the objective of consolidating its data centres, networks and email systems. This followed a tendency to centralize IT services which had been followed by the provinces of British Columbia, Québec, and Ontario, as well as the federal government of the United States of America and some states like Texas. PriceWaterhouseCoopers recommended integrating government data centres in a report ordered by Public Works and Government Services Canada, revealed in December 2011.

In the Republic of Ireland, the health service nationally has been reorganized from a set of regional Health Boards to a unified national structure, the Health Services Executive. Within this structure there will be a National Shared Services Organisation, based on the model developed at the former Eastern Health Shared Services, where procurement, HR, finance and ICT services were provided to health agencies in the Eastern Region of Ireland on a business to business basis.

Organizations that have centralized their IT functions have now begun to take a close look at the technology services that their IT departments provide to internal customers, evaluating where it makes sense to provide specific technology components as a shared service. E mail and scanning operations were obvious early candidates; many organizations with document intensive operations are deploying scanning centers as a shared service. Many large organizations, in both the public and private sectors, are now considering deploying enterprise content management (ECM) technology as a shared service.