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Public sector 'still reticent over sharing services'

26 May 2011

Executives in the public sector are still displaying signs of hesitation over investing in shared service arrangements, according to new research.

A study by market analyst Ovum predicted that around half of public sector chief information officers in Europe remain concerned that shared services will not deliver a sufficient amount of savings.

This is despite the established benefits of pooling resources and outsourcing functions, with other concerns including fears over a potential loss of control.

Jessica Hawkins, analyst at Ovum, explained: "The move to shared services does involve upheaval and invariably means changing software applications, which in turn can require system and data migration and all the complexity that this entails."

Despite these issues, the report nevertheless forecasts that half of European public sector bodies will use shared services within the next two years, a higher adoption rate than regions such as North America and Asia Pacific.

Earlier this month, Colin Cram, former director of the North West Centre of Excellence, told the Guardian Public Leaders Network that shared services can help public sector firms benefit from economies of scale.

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Categories: Local Government


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