Shared Services

Government agencies are attempting to adopt a shared services mentality, but to be successful agencies will have to overcome significant challenges. Shared services involve the bringing together of functionality between multiple, largely autonomous entities. They generate benefits through using a single group to provide a service to multiple agencies or units, rather than requiring each agency to provide the service on its own. Benefits accrue from aggregated economies of scale and the ability to adopt standardized business processes. The need for this transformation is usually driven by the need to relieve financial pressures facing agencies or to take advantage of the opportunity to deliver multi-agency functionality and attempt to realize savings from e-government initiatives.

RGS believes that to be effective using the shared services model in government, the sharing agencies must feel that they retain partial ownership as opposed to outsourcing. RGS believes this is a change management issue, not a technology or business issue. Anyone looking at a typical candidate function for shared services can see the business benefit and the technology to implement a shared service is common place. The challenge is to address the barriers to change in a way that facilitates success and gets the organization to the new model with minimal resistance.

(c) 2008 RGS Associates, Inc. tm. All Rights Reserved   |  Terms of Use  |  Privacy Statement