Benefits of consolidating call centers
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 typical method is to simplify, standardize and then centralize, using an IT 'solution' as the means.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.
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.