ABSTRACT
There are four principal reasons why organizations introduce a human resource (HR) shared service. Because it offers: cost savings, quality improvement, organizational change, and technological development. Organizations believe that shared services can reduce costs by four main means: cutting staff numbers, reducing accommodation charges, obtaining greater combined buying power, and achieving greater efficiency in what is done and how it is done. There are two strands to introducing shared services to improve the quality of the HR delivery. One is to work to higher quality standards per se and the other is to enhance customer satisfaction. For some people, technology is regarded as a facilitator of change rather than a driver in itself. However, this may underestimate its impact. Some shared service models could not have been possible only a few years ago. Technical innovation in communications has enabled far reaching structural change to take place.
