A range of models for the sharing of front and back office services, and a set of case studies to illustrate them, is set out in a new report from Socitm Insight published on November 20.

Shared services - bigger, cheaper, better? is the latest report in Socitm Insight’s Modern Public Services series which is looking at a various aspects of ICT-enabled transformation in local government. Its publication is in part a response to the Government’s clear commitment to shared services which was one of the three key prongs to its Transformational Government strategy published in November last year.

Socitm Insight’s 72-page report contains advice on the potential for sharing services, the implications for the ICT service, the steps to take the initiative forward and the different models for collaboration. It illustrates the advice with a series of seven full case studies where achievements have been made plus six shorter ones of additional interest. Case studies featured include:

• Warwickshire Direct Partnership – a county and district council collaboration centred on a joint CRM system to support contact centres 
• Hampshire and the Isle of Wight’s single non-emergency number partnership 
• Partnerships in Parking Programme (PiP) that involves six London boroughs including Westminster, Camden, Islington, Kensington & Chelsea, Lambeth and the Corporation of London, plus Transport for London. 
• Surrey County Council’s shared service centre - centralising a range of back-office functions including finance, procurement, business intelligence, recruitment, employee services, payroll, data management and training administration 
• The Connected Cumbria Partnership – involving all the local authorities, fire, police and a range of other public services that have come together to maximize the value of e-government for the county 
• Shropshire CC and constituent districts - collaboration across a range of services 
• Cardiff CC and Blaenau Gwent CBC - sharing a bespoke customer relationship management system supporting their separate contact centres 
• London Connects – a partnership of London councils and other public services that delivers, among other things, www.yourlondon.gov.uk, the official online guide to London’s public and community services  

A case study is also included from Tandridge District Council, a local authority that has experienced a number of false starts at partnership working, from which a number of useful lessons can be learned.

The report sets out a range of models for establishing sharing arrangements, and indicates the relevant legal frameworks. Governance arrangements, and how public sector organisations might engage the private sector in their sharing arrangements, are also considered. Nine different models are examined in all, including:

• in-house centralisation
• simple outsource
• informal collaboration
• joint venture
• public sector consortia
• contractual partnership
• lead client
• prime contractor
• trading company 

Finally, having established that creating a shared services arrangement is likely to be a complex undertaking involving a lengthy procurement process, the report looks at the practical steps necessary in order to make shared services happen.

According to Socitm Insight Principal Associate Chris Head, author of the report, Shared services - bigger, cheaper, better? is fulfilling a real current need: ‘While central government is committed to the economies of scale argument for shared services - savings of 20 per cent, equating to £1.4 billion annually - it has not provided much practical guidance on what is required to make it happen. Our report tries to fill this gap by providing practical advice supported by real examples on issues like initiating partnerships, finding leaders, governance structures, choosing delivery models, and involving the private sector. We have also provided a maturity grid to help organisations assess their readiness for sharing services.’

Modern Public Services: shared services - bigger, cheaper, better? is available in pdf format to Socitm Insight subscribers from 17 November 2006 and soon afterwards as an 72pp printed report. 

Non-subscribers can order the report (cost £175 - Socitm members £150).