Date: Wednesday 24th March 2010

Shared services schemes have been on the agenda for some years in the public sector, gaining impetus following efficiency programmes which have identified them as a key area of potential cost savings. Among other departments, those for Health, for Children, Schools & Families, and for Work & Pensions have significantly reduced back office costs by establishing or joining shared services systems.

However, progress across the public sector has been slow. Concerns in particular over departments’ and agencies’ autonomy, and over the practical difficulties of retaining flexibility, providing bespoke services and aligning participants’ policies and practices, have delayed the take-up of shared services programmes across the public sector. This may be about to change.

To date, the advocates of shared services have struggled against institutional inertia and a lack of enthusiasm among some politicians and senior officials: Martin Read, the government’s own adviser on the back office and IT aspects of the Operational Efficiency Programme, publicly complained about a lack of leadership on the issue before jumping ship to join the Conservatives’ new Productivity Panel. But a dramatic deterioration in the public finances and a new political consensus on the need for reform – apparent both within the Treasury, and on the part of shadow Cabinet Office minister Francis Maude – are set to give the shared services agenda a boost. After the general election, a fresh new government will face tough decisions on public spending – and merging back office functions will present an obvious way to make significant savings without damaging frontline services.

Download the write-up of the discussion (PDF).

Last updated 778 days ago by Civil Service Live