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Sharing services May 27, 2011

Posted by Mark Hillary in Government, IT Services, Outsourcing.
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I have recently commented in this blog on the opportunities for sharing services that overlap, particularly in the public sector. Most organisations have similar support functions that can be shared with others, providing the right procedures around data security and ease of use are addressed.

This has not been questioned in the private sector because it is essential for survival. The private sector has had a rough ride in most developed economies since the downturn in 2008, and the UK is no exception. It could be argued that with growth still within the margin for error, the UK has yet to really recover.

So nobody has to convince private sector companies of the benefits for sharing HR, or payroll, or finance and accounting services, either through outsourcing or by reducing a multiplication of effort by several divisions within the same organisation. It seems that many in the public sector still need convincing though.

A new report from the analyst firm Ovum suggests that half of all European public sector CIOs don’t think that the savings are worth the upheaval. Changing software, systems, retraining staff, migrating data – it’s a complex process to venture into a shared service arrangement with no guarantee of success. But as the story in Computer Weekly notes, the NHS is doing it, police services are doing it, councils are doing it.

Is it time for the bar to be lowered on how much needs to be saved to make sharing worthwhile?

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