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CIPFA: Half of public sector expects to shared services within a year

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This was published: 27 Nov 2009 - 06:25 am

Nearly half of the public service organisations expect to be developing partnerships with other public bodies or actively sharing services in 2010, according to a survey from the Chartered Institute of Public Finance and Accountancy (CIPFA).

The survey findings demonstrate that the shared service option is becoming increasingly attractive to public bodies having to save money in the current financial crisis while preserving front-line services. Only 16% of respondents were planning front-line service cuts.

70% of respondents saw very or quite significant cost savings arising from future shared service arrangements. 55% of respondents believed that pressures to cut costs would impact on their own organisation while 83% believed the quality of front-line services across the public sector would be reduced.

Change management (62%) and gaining political agreement (45%) were cited by respondents as the two major challenges in delivering successful shared services

A major guidance report on shared services - Sharing the Gain: Collaborating for Cost Effectiveness is being published by CIPFA on 20 January 2010.

Dr Paul Jackson, CIPFA’s Performance Improvement Adviser said: ‘This CIPFA survey clearly demonstrates that organisations right across the public sector are increasingly turning to shared services as a way to preserve front line services during the financial crisis’

Posted by: joev_admin

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