A shared service delivery model involves centralizing and standardizing common business functions across multiple organizational units. This model can offer several benefits to both employees and management:

Benefits

• Cost reduction: By consolidating services and eliminating redundancies, organizations can achieve significant cost savings.
• Improved efficiency: Shared service centers can leverage economies of scale and best practices to improve operational efficiency.
• Increased focus on core competencies: By outsourcing non-core functions to a shared service center, organizations can focus on their core competencies and competitive advantages.
• Enhanced standardization: Shared service centers can help to standardize processes and procedures across the organization, leading to greater consistency and quality.
• Improved employee satisfaction: Shared service centers can provide employees with opportunities for professional development and career advancement.

Example: A healthcare organization might establish a shared service center to handle administrative tasks such as billing, human resources, and IT support. This would allow the organization to reduce costs, improve efficiency, and free up resources to focus on patient care.

Challenges

• Resistance to change: Employees may resist the transition to a shared service model, particularly if it involves changes to their job roles or responsibilities.
• Loss of control: Organizations may experience a loss of control over certain functions that are now managed by the shared service center.
• Integration challenges: Integrating the shared service center with the rest of the organization can be challenging, particularly if there are cultural or technological differences.
• Quality concerns: There may be concerns about the quality of services provided by the shared service center, particularly if employees are not adequately trained or motivated.

Example: A manufacturing company that establishes a shared service center for human resources may face challenges in integrating the center with the company’s decentralized operations. Employees in remote locations may feel disconnected from the shared service center and may have difficulty accessing the services they need.

Impact of Technology on Service Delivery

Advancements in technology have significantly impacted service delivery, effectiveness, and efficiency. Some key examples include:

• Automation: Automation technologies, such as robotic process automation (RPA), can help to streamline processes and reduce manual labor.
• Cloud computing: Cloud-based solutions can provide organizations with scalable and flexible access to IT resources.
• Artificial intelligence: AI-powered tools can be used to improve customer service, automate tasks, and gain insights from data.

Example: A shared service center that uses cloud-based CRM software can provide employees with access to customer data and communication tools from anywhere. This can improve customer service and increase employee productivity.

In conclusion, shared service delivery models can offer significant benefits to organizations, but they also present challenges that must be carefully addressed. The impact of technology on service delivery is significant and will continue to evolve in the coming years. By understanding the benefits and challenges of shared service delivery and leveraging the power of technology, organizations can improve their operations and achieve their strategic objectives.