Shared services refer to a business model where common support functions are consolidated and provided centrally within an organization, serving multiple departments or units. This approach streamlines operations, optimizes resources, and improves efficiency by eliminating duplication and promoting standardization. Shared services typically encompass functions like human resources, finance, IT, procurement, and customer service.

By pooling resources and expertise, shared services enable cost savings, process harmonization, and enhanced service delivery across the organization. This centralized structure enhances collaboration, enables better decision-making, and allows departments to focus on their core activities, fostering overall organizational effectiveness.