Government entities remain hesitant about adopting shared services approach

In a recent report by Ovum, analyst Jessica Hawkins predicts an increase in the adoption of shared services by European public sector organisations over the next two years. This shift, however, comes with a host of concerns and challenges.

Hawkins highlights the legal complexity of transferring staff to a shared services model as a significant concern for public sector agencies. The move to shared services involves upheaval and changing software applications, which can require system and data migration. However, Hawkins does not provide specific details about the software applications that may need to be altered during the transition.

Another concern raised is the potential for job losses. Hawkins suggests that this could be a potential issue for public sector organisations adopting shared services.

Additionally, 49% of CIOs from European public sector organisations expressed concern that shared services would not save them enough money. This scepticism is further reinforced by 39% of these CIOs who worry about losing control of their key business operations by adopting shared services.

Despite these concerns, Hawkins believes that Europe is slightly ahead of Asia-Pacific and North America in terms of adoption of shared services, although the difference is not considerable. She predicts that more European bodies will be prepared to make the move to shared services in the next two years, widening the gap between Europe and other regions.

However, Hawkins does not discuss the cost implications of the legal complexity of transferring staff to a shared services model. Nor does she elaborate on the exact complexity that data migration during the transition to shared services may entail.

The report released today by Ovum states that many public sector CIOs do not believe shared services can deliver sufficient cost savings. This raises questions about the potential benefits of this shift and whether it will be worth the associated challenges for public sector organisations.