Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What is a common drawback of shared service organizations?

1. Increased job diversity

2. More tailored services

3. Less tailored and more generic services

4. Greater operational control

The correct answer is: Less tailored and more generic services

Shared service organizations often centralize functions to leverage economies of scale, which can lead to a standardized approach in service delivery. This standardization typically results in less tailored and more generic services, as the focus is on efficiency and uniformity across the organization. Organizations may find that while shared services can optimize costs and streamline processes, they often lack the customization that individual departments might require for their specific needs. In contrast to the other options, which suggest benefits such as increased job diversity, more tailored services, or greater operational control, the nature of shared services inherently tends toward providing those more generalized services. As such, organizations may find that their unique requirements are not adequately met, leading to potential dissatisfaction among departments that require a more customized approach to their operations.