Local government not keen on shared services

Local authorities are lukewarm about central government plans to develop shared administration systems to cut costs.

Shared services are integral to plans to improve efficiency across the public sector and meet public spending commitments without raising taxes. But council IT leaders claim that time constraints and organisational complexity stand in the way of progress.

Building effective partnerships takes time, said Glyn Evans, assistant to the chief executive at Birmingham City Council.

“Local government is yet to be convinced about shared services ­ very few major projects have been set up so far,” said Evans.

“You cannot force people together who do not naturally work together, and partnerships take a while to develop.”

The reservations are also reflected in last week’s annual IT trends report from local authority user group Socitm.

Respondents rated shared services only fourth as a policy for improving efficiency, behind alternatives such as flexible working.

Central government planners have been wowed by management consultants, said Socitm report author John Serle.

“Private firms can raise capital more easily and change how they work faster,” he said.

“The speed at which partnerships are adopted by councils will be slower than anticipated and on a smaller scale.”

Local authorities claim shared services are not the only route to improved efficiency.

Westminster City Council is showing that costs can be cut in other ways, said interim head of IT Tony Glew.

“We are meeting our financial objectives, but we share with the private sector, not with other London boroughs,” he said.

See also:

Council IT spend to hit £3bn

Technology investments by local government are expected to rise by nine per cent  03 Jan 2008

Shared services not delivering, says NAO

Prospective £1.4bn savings not yet materialising, according to public sector spending watchdog  29 Nov 2007

Shared services gathers pace

First integrated systems go live at newly-created Whitehall department  22 Nov 2007

Major boost for shared services

Whitehall departments sign up to central IT infrastructure strategy  04 Oct 2007

Shared wireless network cuts costs for fire service

South Wales fire brigade combines with local council  27 Jul 2007

Shared services plan for London boroughs

Authorities given the opportunity to use GLA web site infrastructure  19 Jul 2007

Shared services deal set to expand

Contract extension will allow more government departments to join payroll and HR contract  06 Jul 2007

Whitehall shares desktop IT

Managed service prices to drop as even more departments join up  21 Jun 2007

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