What is a key feature of a shared services organization?

• A. Repeated services are put into one division
• B. All services are performed externally
• C. Duplication of processes is encouraged
• D. Decision making is decentralized to independent business units

Answer: (A)

Shared services centralizes repetitive support activities into a single internal unit that serves multiple parts of the organization. This creates an internal service center where work like payroll, IT support, or procurement is done once for the whole company rather than duplicated in each business unit. The result is lower costs through economies of scale, more consistent processes, and easier performance measurement.

So the key feature is putting repeated services into one division to serve the entire organization. Outsourcing all services (B) isn’t the idea, as shared services are typically internal. Encouraging duplication of processes (C) runs opposite to the goal of efficiency. Decentralized decision making to independent units (D) clashes with the centralized control that helps standardize and coordinate services.