Shared Services And Recruitment Of Business Models Information Technology Essay

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Shared services are a business model in which common products and services are provided by a single, organization for use by a number of different departments within an organization or indeed a number of different businesses . The shared services model improves the financial performance of the corporation by enabling high efficiency in providing common (shared) products and services while allowing business units to focus on their business and their unique requirements.

The advantages of the shared services model are partially lost if the employee customers request custom rather than standard products and services, when a standard item would meet the business necessary. When tens of thousands of customers are involved, it is not possible to provide sufficient training to allow a corporate perspective in their selection of products. There are different techniques are followed by the organizations to fulfill the procedure which gave the customers natural incentives to utilize standard products and required additional review and authorization for custom products.

The Major task of shared services for an independent organization or business unit created to Facilitates non-core, non-strategic, but essential, services to client groups within an organization. The services are usually based on common processes or operations that are shared by more than a single business unit. I.e., services are for Human Resources, accounting, legal, Information Technology, finance and tax. Some shared service Centers even facilitates services to other organizations as well.

By the means of shared services the recruitment is considered to be the popular services. Where the Recruitment is taken as a task that mainly involve business perspective, expertise, ability to find and match the best potential candidate for the organization, diplomacy, marketing skills (as to sell the position to the candidate) and wisdom to align the recruitment processes for the benefit of the organization.

Shared services allow internal providers to be more efficient through common processes, economies of scale, standardization. shared services facilitates an internal task with sufficient size to Facilitates a community of proficiency, good for hiring, training, retaining. A shared service business model permits the business units to discontinue their fragmented focus on non-core support areas, because the shared service group accepts responsibility and accountability for those areas.



The Aim of the research report is to evaluate the features of shared services in recruitment procedure and the enhancements which can help to improve the services and their uses for the organization HR department as well as economic status, which required in recruitment process for maintenance and for the selection team maintained at recruitment.


The major objective of the Research report is to evaluate certain ideas for successful implementation of technologies and necessary supports required to work on new idea which can help in improving various performances in shared shares services such as cost effectiveness quality of work etc .

The emergence of an ever increasing number of shared services organizations goes hand in hand with an increasing demand for shared services which is targeted for whole organization. Several senior HR and finance professionals have found themselves as the leaders of shared service initiatives and operations. Some have risen to the challenge and are now recognized experts in their field and others have not made the transition quite so successfully. The objectives to fulfill the research are:

The following objectives have been considered:

Critically evaluate how organizations can generate cost effectiveness through shared services initiative.

Should organizations invest in technology first when deploying shared services?

Are shared services able to assist organizations building a Centre of Excellence to gain access to organizational resources?

How shared services and recruitment in shared services can improve standardization of business processes.

What are the benefits of standardization within shared services and how can these is best arranged.

Brief Literature review:

Some prominent multinational players can look back on 5â€"10 years of experience in shared services and business procedure outsourcing (BPO). For example, Diageo has 10 years of experience with BPO and Proctor & Gamble has 5 years. Therefore, we are able to have a more distant view on the pros and cons experienced by these pioneers.(author date)

Research (People strong, 2009) suggests the following compelling reasons why organizations should consider Shared Services in their HR organizations.

Most organizations report 21 percent to 80 percent savings by switching their HR delivery mechanism to shared services

HR SSC helps in delivering a consistent service experience to employees with huge reduction in errors even when multiple vendors are involved as is most often the case

HR SSC permits to sustain a consistent set of HR practices across an enterprise which are derived and continuously improved on basis of industry benchmarking

Enabling HR professionals to focus on strategic support of the organization instead of being bogged down with routine administrative requests Facilitates even more benefits

As organizations devise human capital management (HCM) strategies to give them a competitive edge in hiring, training and deploying employees to meet business goals, HR shared services has entered an era of increased relevance and value.

Moller, (1997) suggests there are number of organizations and in govt. sectors which are providing as well as using the shared services. For an instance, The Government of Victoria is in the very early stages of planning some level of shared services re-organization. A shared services centre is to be established in the department of treasury and finance to facilitates IT services to all Government departments. ICT functions across Government will be integrated from procurement through to interaction with the community. A new unit called the Information Systems and Infrastructure Office in the Department of Treasury and Finance will guide government-wide IT issues. Prior to its recent re-election, the Government claimed that through consolidating IT functions across Government $20 million could be saved in four years.

In 1998 the Northern Territory Government established its shared services provider the department of corporate and Information Services (Northern Territory Government, 2006). Four entities make up the department, which are the DPIS and three Government Business Divisions;

Data Centre Services;

NT Fleet.

Government Printing Office.

The ACT Government implemented a shared services program with the opening of the Shared Services Centre on 1 February, 2007 (Australian Capital Territory Government, 2007). The centre facilitates corporate services in finance, human resources, records management, publishing services, ICT and procurement. Four separate business units comprise the Centre:

Human resource services.

Finance services.

InTACT (ICT, records and publishing services).

Procurement solutions.

The Future of Shared Services:

The future of shared services looks very bright because it combines people, Procedure and Technology to facilitate service and accountability in these essential areas. Those leading edge organizations who have already started realize that it will take three to four years to gain all the benefits, but as Ken Hood of Mobil Oil Organization said, "I would never go back to the old way of doing business." (Schulman, D. S., Dunleavy, J. R., Harmer, M. J. & Lusk, J. S. 1999: p-234).

One more feature of shared services is the procedure to discover the sources of manpower to meet the requirements of the staffing schedule and employ effective measures for attracting the manpower in adequate numbers to facilitate effective selection of an effective working force. Recruitment by the shared services is the procedure of decision and attracts capable applicants for employment and for those consequence is a pool of applicants from which new employees are selected. (Adler, 2003)

The necessary for change is convincing. Line managers have long known that they can only achieve high levels of external customer satisfaction if they receive the right kind of support from these groups within the organization. Management theorist Peter Drucker has noted, "Forty years ago, service and support costs accounted for no more than 10 percent or 15 percent of total costs. Now that they are more likely to take forty cents out of every dollar, they can no longer be brushed aside.( Barnaby J. Feder, 2005 : p, 132)


The research is defined as a systematic effort to collect and use information to add to understanding which helps to improve education, thus the research approach is how the researcher is going to collect data to answer the research question (Saunders et al, 2003).

Saunders et al. (2003) defined three research philosophies: positivism, interpretive and realism. Positivism intends to consider the researcher as an objective analyst. The positivism philosophy appears to meet the research requirement. The objective analysis, gives to the researcher the intention of producing a general law that can be used to predict behavior.

By expressing my own values and preferences I too would be subject to such limitations. This is why the realist approach may be more suitable for the researcher in researching the issues about discussed in literature. Compared with the positivist researcher the realistic researcher will approach the research with the ambition of positivism but will recognize the subjective nature and the inevitable role of values in it.

The evaluation will use both the quantitative and qualitative approaches; moreover the quantitative research has been perceived as more “objective” which is fitting the selected realistic research philosophy by the researcher.


Internet has been considered the main source through which different reports from journals, and e-books downloaded and referred for understanding and evaluation in gaining more knowledge.

Also, through different publications and books on different shared services and features of those services has been taken as a part of report.


As discussed above the study will be using both qualitative as well as quantitative data. For the collection of primary data the researcher will be using questionnaire survey method. A structured questionnaire will be formulated and pilot tested. The questionnaire will be administered to the customers enables the researcher to collect quantitative data while the in-depth interviews will be held with some managers in HR and shared services who are familiar to the market.