Shared Service Agreement Template

A shared service agreement template is a valuable tool that businesses can use to streamline their operations and reduce costs. This document outlines the terms and conditions under which multiple departments or entities within a company agree to share resources, services, or facilities. Shared service agreements are particularly common in larger organizations where different departments often need to work together to achieve common goals.

Using a shared service agreement template can help businesses save time and money by providing a clear framework for collaboration. Rather than creating a new agreement from scratch each time, organizations can use a pre-designed template that covers all the necessary points. This can cut down on legal costs and ensure that important details are not overlooked.

A shared service agreement template typically includes several key sections:

1. Definitions: This section defines the terms used throughout the document, such as “service provider,” “service recipient,” and “shared services.”

2. Scope: This section outlines the specific services or resources that will be shared under the agreement. It should be clear and specific to avoid misunderstandings later on.

3. Responsibilities: This section specifies the responsibilities of each party involved in the agreement. It may include details on who will provide the services, how often they will be provided, and what happens if one party fails to meet their obligations.

4. Payment: This section outlines the financial arrangements between the parties. It may include details on how costs will be shared, how payments will be made, and what happens if one party fails to pay.

5. Performance metrics: This section specifies the standards that must be met in order for the services to be considered successful. It should include details on how performance will be measured and what happens if the standards are not met.

6. Governance: This section outlines how the shared services will be managed, including details on decision-making processes, dispute resolution mechanisms, and how changes to the agreement can be made.

Overall, a well-designed shared service agreement template can help businesses streamline their operations and reduce costs by providing a clear framework for collaboration. By using a pre-designed template, companies can save time and money while ensuring that important details are not overlooked.