A shared services contract is a model for providing enterprise support. It works by consolidating and combining services between business units and headquarters into a separate unit based on market principles. Read 3 min Internal customers must then indicate their own service requirements. Suppliers must meet their requirements and suppliers will have their performance evaluated on the basis of easily measurable specific criteria. If properly executed, the shared services approach takes advantage of the benefits of centralization and combines it with decentralization. Service authorization can be done in three ways. Different services within an organization can agree to share the same service, for example.B HR or IT. An organization can also centralize a service that can then be opened to other organizations. Another option is to create and share a service or utility by different organizations. In the conflicting society in which we all live today, it is very important to reach a strong agreement. A shared services agreement is the easiest to legally approve if it is formulated as short and soft. A simple, short agreement facilitates access to other public bodies on the same side. All parties to the agreement will benefit from the following benefits.
A service-sharing agreement is actually a resource-sharing agreement. It is a way to reduce costs, improve efficiency and standardize certain processes. In this case, the service provider is responsible for maintaining certain performance indicators or KPIs, such as the quality and costs of the common utility. The agreement should provide details such as how long the service can be used by each party, service security, service allocation, etc. This should be done clearly in order to avoid future conflicts over them. The agreement applies from that date. Each agreement also defines its validity and the terms of termination of the contract. Once the validity has expired, the parties can decide whether or not to continue to share the service and draft a new agreement accordingly. The agreement should also specify the conditions under which it can be terminated for those who can take the initiative of this measure and other details concerning it.
It is important to remember that the more flexible you are in your agreement, the more versatile the agreement will be. Don`t do it too tightly and specific when drawing up the agreement. For example, you don`t have to limit certain types of devices used or the specific services you provide.