Corporate Services vs. Shared Services

Attribute	Corporate Services	Shared Services
Definition	Services provided within a single organization to support its internal functions and operations.	Services shared among multiple departments or business units within an organization to increase efficiency and reduce costs.
Scope	Primarily focused on supporting the overall goals and operations of the organization.	Focuses on specific functions or processes that can be standardized and shared across different parts of the organization.
Responsibility	Typically managed by internal departments or teams within the organization.	Managed by a centralized Shared Services Center that serves multiple parts of the organization.
Cost	Costs are usually allocated to individual departments or business units within the organization.	Costs are shared among the departments or business units that use the shared services.
Flexibility	May be less flexible in terms of customization and tailoring services to specific departmental needs.	Can be more flexible in adapting services to meet the unique requirements of different parts of the organization.

Introduction

Corporate services and shared services are two common business models that organizations use to streamline operations and improve efficiency. While both types of services aim to support the overall goals of the company, they have distinct attributes that set them apart. In this article, we will compare the key features of corporate services and shared services to help you understand the differences between the two.

Corporate Services

Corporate services are typically centralized functions within a company that provide support to the entire organization. These services are essential for the smooth operation of the business and often include departments such as human resources, finance, legal, and IT. Corporate services are responsible for setting policies, managing compliance, and ensuring that the company operates efficiently and effectively.

One of the main characteristics of corporate services is that they are usually dedicated to serving the internal needs of the organization. This means that their primary focus is on providing support to employees and other departments within the company. Corporate services are often seen as the backbone of the organization, as they play a crucial role in maintaining the company's overall health and well-being.

Another key attribute of corporate services is that they are typically funded by the company itself. This means that the costs associated with corporate services are usually included in the company's operating budget. As a result, corporate services are accountable to the company's leadership and are expected to operate in a cost-effective manner.

Corporate services are also known for their high level of specialization and expertise. Because these services are dedicated to specific functions such as finance or legal, they often have deep knowledge and experience in their respective areas. This allows corporate services to provide valuable insights and guidance to the rest of the organization.

Overall, corporate services play a critical role in supporting the strategic objectives of the company and ensuring that the organization operates smoothly and efficiently.

Shared Services

Shared services, on the other hand, are centralized functions that provide support services to multiple business units within an organization. These services are designed to consolidate and standardize common functions such as HR, IT, and finance in order to achieve economies of scale and improve efficiency. Shared services are often implemented as a way to reduce costs and increase productivity.

One of the main characteristics of shared services is that they are focused on serving multiple business units within the organization. This means that shared services are responsible for meeting the needs of a diverse group of stakeholders and must be able to adapt to different requirements and priorities. Shared services are often seen as a way to promote collaboration and alignment across the organization.

Another key attribute of shared services is that they are typically funded through a chargeback model. This means that business units are charged for the services they use, based on their level of consumption. By using a chargeback model, shared services are able to operate as a self-sustaining entity and are incentivized to operate efficiently and effectively.

Shared services are also known for their focus on continuous improvement and innovation. Because shared services serve multiple business units, they are constantly looking for ways to streamline processes, reduce costs, and enhance service delivery. This focus on innovation allows shared services to stay ahead of the curve and provide value to the organization.

Overall, shared services play a crucial role in driving operational excellence and delivering cost-effective services to the organization.

Comparison

While corporate services and shared services have some similarities in terms of providing support to the organization, there are several key differences between the two models. Corporate services are typically focused on serving the internal needs of the organization, while shared services are designed to serve multiple business units. Corporate services are funded by the company itself, while shared services operate on a chargeback model. Corporate services are known for their specialization and expertise, while shared services are focused on continuous improvement and innovation.

Both corporate services and shared services play important roles in supporting the overall goals of the organization and ensuring that the company operates efficiently and effectively. By understanding the attributes of each model, organizations can determine which approach is best suited to their needs and objectives.