Shared Services to deliver £40 billion in efficiency savings over 10 years
19 December 2005
A Christmas Present for Gordon Brown.
Guidelines issued today by the BuyIT Shared Services Advisory Group, comprising 21 of the most influential global service providers, will help Government deliver better services at lower cost
Up to £40billion could be saved in the UK public sector over the next ten years if Shared Services are implemented optimally, according to the BuyIT Shared Services Advisory Group. The Group, members of the UK’s leading Best Practice Network, today released comprehensive guidelines aimed at helping the UK Government deliver better services at lower cost and deliver part of the £20billion efficiency savings demanded by the Chancellor by the year 2007/8.
The Advisory Group, chaired by Graham Colclough, Vice President for Global eGovernment at Capgemini UK plc and consisting of representatives from 21 of the most influential global service providers, estimates that Government HR and Finance services alone cost £9billion more each year than private and public sector best-in-class benchmarks. This is the equivalent to the provision of 15 new super hospitals, 30 new secondary schools, 50 new primary schools and 200 miles of new motorway each year.
The Group, however, suggests that without careful integration, planning, collaboration and resourcing, implementation of Shared Services is in danger of delivering incremental cost savings but missing the opportunity to drive a transformational change in service delivery. The guidelines have been specifically designed to encourage collaboration between the Government and both public and private sectors in order to deliver successful solutions based on common processes and services, where shared services are a stepping-stone to transformation and delivering public value to the citizen.
Graham Colclough of Capgemini said: “There are two important parts to sharing: Who you share with, and what you share. Given the scope and scale of the public sector Shared Services landscape the only way that the step-change will be delivered is through very close cooperation within and between public users and service providers. For success, the conversations must continue and an open-minded approach must be taken by all parties to develop and embrace the good practices and the emerging new models of service provision that will transpire.”
“This Compendium has been developed by a powerful group of global thought leaders who have consulted the members of our Public Sector Shared Services Experience Sharing Forum of early adopters, and is a leading example of how collaboration can drive improvement.”
Frits Janssen, chief executive of BuyIT, said: “The Prime Minister is committed to a transformation in the UK Public Sector that delivers not just efficiencies, but also substantially improved effectiveness and employee experience. The Gershon Efficiency Review, the Lyons Review and the Transformational Government strategy make it clear that the effective implementation of Shared Services in the UK public sector will be a key component of this transformation.”
David Myers, director of the e-Government Unit Shared Services Team, said: “Shared Services are not new: It’s not clever, but it is big.”
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Notes to editors:
The BuyIT Shared Services Advisory Group
The Guidelines have been produced by the BuyIT Shared Services Advisory Group
and does not represent Government Policy. For information on Government Policy
on Shared Services and advice, one should contact the Cabinet Office Shared Services
Transformation Team at the Cabinet Office on 0207 276 3101 or visit www.cio.gov.uk/sharedservcies
Shared Services Forum Members
Cabinet Office, CPS, DCA, DEFRA, DfES, DfT, DoH, DWP, HMPS, HMRC, Home Office, LGA, MoD, NHS, NICS, ODPM, OGC, Prison Service, Scottish Executive, Transport for London and Treasury.
Advisory Group members
Accenture, Atos Consulting, Capgemini, CSC, Deloitte, EDS, Ernst & Young, Fujitsu, IBM, Liberata, LogicaCMG, Microsoft, Oracle, PwC, SAP, Serco, Siemens Business Services, Sun Microsystems, Tata Consultancy Services, Vertex and Xansa.
Contact details for Advisory Group members can be obtained from Andrew Twomey of BuyIT – email: andrew.twomey@itworld.co.uk
BuyIT Members participating
BAA, Cadbury Schweppes, Corus, Rolls-Royce, Reuters.
The Shared Services Forum and Advisory Group
The BuyIT Best Practice network is engaged by the e-Government Unit of the Cabinet Office to manage a Public Sector Shared Services Forum:-
• To develop and communicate best practice
• To accelerate take-up of Shared Services in Government.
Forum members (Early Adopters of Shared Services in Government) meet every six to eight weeks in a professionally facilitated environment, to share experiences and to identify and promote Shared Services best practice (under the Chatham House rule).
A Shared Services Advisory Group of Service Providers, global leaders in Shared Services supports the programme.
The BuyIT Best Practice Network
The BuyIT Shared Services Best Practice Network is the leading ICT Best Practice Network with a mission to:
“help organisations realise the business benefits from ICT by identifying and promoting best practice in e-business.”
For more information contact
Frits Janssen, Chief Executive, BuyIT at frits.janssen@itworld.co.uk
David Eakin, Professional Services Director, BuyIT at david.eakin@itworld.co.uk
18 Buckingham Gate
London
SW1E 6LB
tel: 020 7828 7300 fax: 020 7828 7990 web: http://www.buyitnet.org/.
