Creating IT Shared Services

An important organizational trend is the practice of offering IT services via a shared services model. A shared services model is attractive to IT organizations, as it promises benefits due to centralization and/or consolidation of similar activities across the organization. For the business, a shared services model is attractive because it frees up resources by transferring responsibility for a noncore activity to another organizational body. Based on a focus group of senior IT managers from leading organizations, this article examines the current practice, in particular the reasons for adopting an IT services model, how IT shared services are structured, challenges during implementation, and benefits derived from this model once implemented. The article concludes with suggested strategies for organizations interested in creating an IT shared services organizational model.