Become a shared service provider or consolidate and use the services of another organization? That’s the question federal agencies must answer as deadlines approach. Under the 2012 Federal IT Shared Services Strategy, federal agencies must first look for existing systems and services before considering new IT investments. Though some federal agencies have made good progress in shared service adoption, many misperceptions have generated widespread concerns. In this podcast, learn about the efficiencies shared services can bring at the federal, state and regional levels.
The argument for shared services is compelling. Agencies that migrate to these functions can save anywhere from 25–55 percent of what it costs them to perform the functions themselves. What’s more, shared services can optimize the delivery of cost-effective, flexible and reliable services for organizations and allow agencies to focus on their core mission. In fact, 75 percent of Fortune 500 companies use some form of shared services.
So, what services make good candidates for sharing? Federal agencies should identify functions that have low strategic impact and have repeatable transactions or standard processes. Research shows that users of shared services are better able to focus on their missions and core competencies, leaving the administrative and back-office functions to shared service providers.
Listen to the podcast to hear some of the lessons learned when implementing shared service and discover how to empower your agency to focus more on its mission.