The consolidation of business operations used by multiple parts of the same organisation is known as shared services.
Shared services save money by centralising back-office operations used by multiple divisions of the same company and eliminating redundancy. Some businesses use a chargeback system to bill service divisions on a per-use, per-quarter, or per-year basis. Other businesses include the cost of shared services in their overall operating costs. Most businesses now use a shared services model for finance, human resources (HRM), and information technology (IT).
A shared services delivery model’s goal is to enable each business division to direct its limited resources toward activities that support the division’s business goals. Because technology can be costly to purchase, maintain, and train employees to use, it has often been the driving force behind shared services within an organisation. Typists were highly trained employees in the 1920s, when an Underwood typewriter cost $100. Instead of having each business division within the company hire its own typists, it was decided that a centralised department for typists would be more cost-effective, and thus the typing pool was born. A typing pool is now known as a shared service centre (SSC).