Shared-services best for all in the public sector, Accenture study finds

More and more government managers are looking to the private sector for best practices. As part of the study, 'Driving High Performance in Government: Maximizing the Value of Public Sector Shared Services', Accenture interviewed over 140 senior government executives, across 13 countries including South Africa, in order to identify their views on and use of shared services.

17 Feb 2005

'Shared services' is defined as the consolidation of administrative or 'back office' support functions of various departments or agencies into a single, stand-alone unit. These services - like invoicing, payroll management, administering benefits or supporting IT infrastructure - typically get limited attention from elected officials, top executives, and the public, but they can take a substantial amount of operating funds and management time, particularly if they rely on outdated technology and business processes.

More than three quarters of respondents (85%) said they believe that shared services are playing or will play a role in supporting their organizations' strategic goals. In addition, two-thirds (66%) of the government executives reported that they had already implemented, or were in the process of implementing, shared services, while only 6% of respondents said they would not even consider a shared services model. The most common processes found in government shared services are related to information technology, finance and human resources.

The study also found that moving to a shared services model gives organizations the opportunity to shift budget from administrative activities to front-line, citizen-facing services, helping to drive out significant cost reductions while at the same time improving government services.

"Governments around the world are facing similar challenges focused on improving public sector value. For most, meeting efficiency targets, reducing costs, and responding to citizen demands for improved services are at the top of their list," said David A. Wilson, managing partner of the Finance & Performance Management service line in Accenture's Government practice.

The top three objectives for shared services identified by respondents were:
1. To help meet efficiency targets.
2. To facilitate cost reductions.
3. To address citizen demands for improved services.

Other key findings were:

Governments in-source their own shared services centres, although many rely on outside expertise during planning.

Government has very specific challenges to shared services, such as a lack of the necessary leadership and managerial skills to tackle change programmes.

Although two-thirds of the government executives interviewed said they have started to implement some components of a shared services operating model, few have implemented them all - so few have realized the full potential of a shared services environment.

Some government leaders have already begun achieving significant benefits from implementing shared services. Government leaders in Australia, Singapore, Germany, Ireland, the United Kingdom and the United States reported having already reduced costs and achieved greater efficiency in certain areas.