Shared Services Agreement Explained

The UK government is working on a comprehensive plan to realize the benefits of shared services, as part of a central system of efficiency according to Gershon`s review. The Cabinet Office has set up a team specifically tasked with speeding up reception and developing the strategy for all government departments to bring people together and consolidate. The potential savings of this transformation in the UK public sector were initially estimated by Office at GBP 1.4 billion per year (20% of the estimated cost of HR and finance functions). In its November 2007 report[10], the National Court of Auditors (United Kingdom) indicated that this amount of GBP 1.4 billion did not contain a clear cost base and contained several uncertainties, such as. B initial expenditure and timing of savings. The Canadian government adopted, on August 4, 2011 Shared Services Canada was set up with the aim of consolidating their data centers, networks and email systems. [13] This follows a trend towards the centralization of computer services followed by the provinces of British Columbia, Quebec and Ontario, as well as by the federal government of the United States of America and some states such as Texas. PriceWaterhouseCoopers recommended the integration of government data centers in a report published by Public Works and Government Services Canada in December 2011. [14] Traditionally, the development of a shared services organization (SSO) or a shared service center (SSC) within an organization is an attempt to reduce costs (often through economies of scale), standardized processes (through centralization).

A reference study of the Global Service Center[6] by the Shared Services Network (SSON) and Hackett Group, which surveyed more than 250 companies, showed that only about a third of participants were able to achieve cost savings of 20% or more with their SSOs. At NASA, the move to a shared services model in 2006 generated savings of nearly $20 million per year. In addition, NASA`s shared services center is expected to save a total of more than US$200 million by the organization`s end of 2015, according to NASA`s director of service delivery. [7] Companies that have centralized their IT functions have begun to take a close look at the technology services provided by their IT departments to their internal customers and assess where it is useful to provide certain technology components as a shared service. . . .

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