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Shared services 'could deliver major public sector savings'

16 May 2011

Public sector organisations should seek to take fuller advantage of the economies of scale provided by the implementation of shared services.

This is the view of Colin Cram, the former director of the North West Centre of Excellence, who told the Guardian Public Leaders Network that there is currently a large amount of duplication in public sector services.

He stated that the cost of back office services could be cut by between ten and 20 per cent by introducing a more joined-up model, which could help to avoid certain functions from being scrapped.

Mr Cram observed that the benefits of such a model are widely acknowledged, but have not yet been completely embraced, with many public sector bodies opting for collaborations rather than full shared service initiatives.

"There could be a huge rationalisation of service delivery activities throughout much of the public sector ... a much stronger and consistent lead from the government is overdue," he added.

Last week, Michael Wood of Haringey Council told the publication that shared services could be of particular benefit in the area of procurement.

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Categories: Central Government


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