Concept helps achieve economies of scale; allows focus on core activities
For more than three decades, organizations have pursued and refined the concept of sharing basic services across business units. Initially seen as a strategy to provide functions such as accounting and payroll more cost effectively, the concept has evolved to encompass many other functions, including information technology, human resources, legal, real estate and procurement.
The concept is straightforward–consolidate and standardize common business functions to capture economies of scale and allow business units to focus on their core activities.
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