Feeds

Public sector could save billions through shared services

That's 15 hospitals, 30 secondary schools, 50 primary ...

Choosing a cloud hosting partner with confidence

The government could save up to £40bn over the next decade by sharing services across public sector human resources and finance functions, researchers claims.

The BuyIT Best Practice Network, which has been working with the government on take-up of shared services, makes the estimate in a best practice guide published this week.

It calculates that government finance and HR services alone cost £9bn a year more than is necessary, the equivalent of 15 new hospitals, 200 miles of motorway, 30 new secondary and 50 primary schools each year.

The guidance says that to contribute to savings public sector bodies should consider sharing services that are common across different sectors, such as IT, finance and procurement.

By standardising processes such as these, it says will result in greater efficiency and less duplication or overlap between different agencies.

To begin with, the guidance says public sector agencies should carry out assessments of possible shared service partners to establish a list of organisations with similar aims.

Depending on factors such as the size of the organisations involved and the desired outcomes of partnership working, the guidance says there are a number of different commercial structures that can be applied to shared services.

These include the unitary model, where one single organisation consolidates and centralises a business service, the joint initiatives model, where two or more bodies set up and operate shared services and outsourcing, where a third party takes on the running of a department’s service.

Once a model has been agreed, the guidance recommends benchmarking to enable organisations to learn from each other and continue improving.

However it warns these should be used "with caution" as benchmarking data can sometimes be unreliable.

Shared services is a central theme of the Cabinet Office’s Transformational Government strategy, through which it hopes to modernise services and save money,

In an interview with eGov monitor, David Myers, director of the shared services programme in the Cabinet Office, said: "There is every reason to suggest that front line services (particularly within local government), can benefit significantly from a sharing approach. Sharing is now implicit within our Transformational Government Strategy, and requires a major cultural shift across Government."

Related links

BuyIT: Shared Services in the Public Sector
Interview with David Myers

Copyright © eGov monitor Weekly

eGov monitor Weekly is a free e-newsletter covering developments in UK eGovernment and public sector IT over the last seven days. To register go here.

Security for virtualized datacentres

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Lords take revenge on REVENGE PORN publishers
Jilted Johns and Jennies with busy fingers face two years inside
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.