7 back-office shared services examples worth knowing
- Back-office shared services centralize repeatable support work into one internal unit that serves the whole company.
- Finance, HR, procurement, IT, data, customer admin, and facilities are the seven functions companies consolidate most often.
- The model cuts cost and improves consistency, and it often sets the stage for later outsourcing.
Back-office shared services pull repeatable support tasks out of separate departments and run them as one internal unit. Instead of every business unit handling its own payroll, invoices, or IT tickets, a single team does that work for everyone. The goal is simple: standardize the process, cut duplication, and lower cost.
This approach is common across large organizations. Historically, as Deloitte notes, shared services centers “were used primarily to reduce the cost of core business functions, such as finance, procurement, human resources, and information technology.” Today the model covers even more ground.
Below are seven back-office shared services examples worth knowing. Each one shows a support function that companies frequently centralize. Together they explain why the model works and where it fits.
1. Finance and accounting
Finance is the classic shared service. A central team handles accounts payable, accounts receivable, general ledger, and reporting for the whole business. Because the work is high volume and rule based, it standardizes well.
For example, one team can process every supplier invoice under one set of controls. As a result, errors drop and month-end close speeds up. This specific function has its own detailed playbook. To dig deeper, see this guide to the finance shared services model and how to build it step by step.
2. HR and payroll
Human resources is another core example. A shared HR team runs onboarding, benefits administration, employee records, and payroll. These tasks repeat every pay cycle, so consolidation makes them faster and more consistent.
Payroll is a good illustration. When one unit runs it, the company applies the same tax rules and pay policies everywhere. However, complex cases still get routed to specialists. This keeps both speed and accuracy in check.
3. Procurement and vendor management
Procurement covers sourcing, purchasing, and supplier management. In a decentralized setup, each department buys on its own. That leads to duplicate vendors and weak pricing.
A shared procurement service fixes this. It pools demand across the company, so the business negotiates better rates. It also tracks contracts in one place. Because of this, spending becomes easier to see and control.
4. IT support and helpdesk
IT support is one of the most centralized back-office functions. A single helpdesk fields tickets, resets passwords, and manages devices for every team. Users get one place to go for help.
This model scales well. For example, a shared IT team can push a security update to all staff at once. As a result, the company stays consistent and reduces risk. Standard tools and scripts also cut resolution time.
5. Data entry and data management
Data work is a natural fit for shared services. This includes data entry, cleansing, migration, and record keeping. The tasks are repetitive and rule based, so one trained team handles them well.
Centralizing data also improves quality. When one unit owns the process, records follow the same format. Because of this, reports across the business become more reliable. Clean data then supports better decisions everywhere.
6. Customer support administration
Not all customer work is front line. Much of it is back-office admin: order processing, account updates, returns, and case logging. A shared team can own this support layer for the whole company.
This keeps service consistent across products and regions. For instance, every refund follows the same steps. As a result, customers get the same experience no matter which team they touch. Front-line agents also stay focused on live conversations.
7. Facilities and administrative services
The last example covers facilities and general admin. Think office management, travel booking, mail, and workplace support. These tasks are easy to overlook, but they add up fast.
A shared admin unit handles them for every site. Because the work is standardized, the company avoids paying separate teams to do the same thing. Deloitte’s own examples show firms running “HR, finance, IT, procurement, and facilities” through one coordinated shared services model.
Shared services vs decentralized: a quick comparison
How does the shared model differ from the old decentralized approach? The table below sums up the trade-offs. As SHRM puts it, “centralizing can increase efficiency and standardization; decentralizing can increase responsiveness and empowerment.”
| Factor | Shared services (centralized) | Decentralized (each unit) |
|---|---|---|
| Cost | Lower, thanks to scale and less duplication | Higher, with repeated roles across units |
| Consistency | High, one process for everyone | Variable, each unit sets its own rules |
| Speed for local needs | Slower for unusual requests | Faster, closer to the business |
| Control and visibility | Strong, data sits in one place | Weaker, data is scattered |
| Best for | High-volume, rule-based work | Highly local or specialized work |
Frequently asked questions
What is the difference between shared services and outsourcing?
Shared services stay inside the company as an internal unit. Outsourcing hands the work to an external provider. Many firms start with shared services first. Then, once processes are clean, they consider an offshore partner for parts of the work.
Which functions are best suited to back-office shared services?
High-volume, rule-based work fits best. Finance, HR, payroll, procurement, IT support, data entry, and admin all qualify. These tasks repeat often, so one team can run them at scale. Highly specialized or local work is a weaker fit.
Do shared services actually save money?
Usually, yes. The savings come from scale, standard processes, and less duplication. Deloitte reports that many organizations with a global business services leader see savings above 20%. Actual results depend on scope and how well the transition is managed.
Is a shared services center only for large companies?
No, but scale helps. Larger firms gain the most because they have more duplicate work to consolidate. Smaller companies can still centralize one or two functions. They may also outsource instead of building a full center.
Key takeaways
- Back-office shared services centralize repeatable support work into one internal team that serves the whole company.
- Finance, HR and payroll, procurement, IT, data, customer admin, and facilities are the seven functions most often shared.
- The model lowers cost and raises consistency, but it trades away some local speed.
- Shared services often come first, and they can lead to later outsourcing once processes are standardized.
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