According to a new survey, shared services are an expanding priority among public sector CIOs. The survey of 40 state and territorial chief information officers or their equivalents, was sponsored by the National Association of State Chief Information Officers, TechAmerica, and Grant Thornton LLP. The survey showed that two-thirds of CIOs already use an IT shared services model for all—or at least some —of their IT activities, and more than a quarter of the CIOs said they would introduce a new shared services model. Likewise more than three-fourths plan to expand an existing model.
Shared services, defined behind the survey as “the practice of a single government entity providing IT services to other government entities” are a great way to save money and expand services. And its benefits certainly are not limited to the public sector. Read on to find out more from companies relying on Oracle solutions to move them to a shared services model, including how Oracle helped Verizon save one billion dollars.
Verizon's Billion Dollar Story To streamline operations, Verizon leadership decided to launch a shared-services organization. The shared-services model entails the creation of a centralized business unit that performs common services and functions for the rest of the company. This allows other operating units to focus on their core business.
Executives Want to Share Shared-services organizations are growing in popularity for some obvious reasons. First, the cost savings can be huge. Second, shared services give businesses a chance to rethink existing processes from scratch and redesign them based on the latest best practices. Both of those benefits are attractive to executives in all parts of an organization. But there's another big reason as well.
White Paper: Business Intelligence as a Shared Service (pdf) The decision to implement business intelligence as a shared service should rely on a solid fact-based assessment focused on the value that the capability will deliver. Once the decision has been made, implementing business intelligence as a shared service requires designing a new organization with clear attributes, including governance, service level agreements, cost model, and technology toolset.
Public Sector Health, Private Sector Practice To help reduce the cost of providing care, the U.K.'s National Health Service pursued a strategy of shared services. The idea was that a number of shared-service centers would manage back-office functions such as payroll, procurement, and financials so individual organizations could focus on their missions of healing patients. And, in theory, the specialized shared-services organization could do a much better job at these functions than provider organizations. It sounded like relief to overburdened providers, but others saw a potential problem. Blog: Shared Services...Do They Really Help to Meet Business Objectives! From the Infosys-Oracle Blog: “An 'IT shared services' running profitably is a clear sign then the customers requirements have been understood correctly and they are being served at the right price.”