Shared services in the context of this study may be seen as the convergence and streamlining of the sector’s or parts of the sector’s functions to ensure that they deliver quality services as effectively and efficiently as possible, with potential for economies of scale and synergies through multi function working (such as the linking of human resources (HR) and Finance functions). Such services can be delivered wholly within an organisation or can be delivered by another organisation or through joint working.
The profile of shared services has never been higher as demonstrated by the release of the Gershon review by HM Treasury, the subsequent Transformational Government – Enabled by Technology report by the Cabinet Office, the Scottish Government’s ‘Efficient Government’ initiative and the Higher Education Funding Council for England (HEFCE) commissioned report by KPMG Shared Services in the Higher Education Sector. HEFCE ‘s recent invitation for expressions of interest in leading feasibility studies and participating in shared services has generated a considerable amount of interest from the sector.
The KPMG report commissioned by HEFCE identified a presumption in current thinking that sharing HR and finance systems increases efficiencies (through standardisation, simplification and sharing) and through this better value for money can be delivered, therefore enabling more to be spent on “front-line” services with a consequent improvement in those services.
The extent to which this is valid in HE and FE is yet to be tested, however it is clear that universities spend considerable amounts of money on HR and finance each year (with more on other support services), and that the administrative services most often moved into shared service centres are finance, payroll, HR and IT.
Shared services do not necessarily mean outsourcing, although this is an option. There are many other models, ranging from one institution providing a service for another, to institutions grouping together to form a joint venture company to provide a service for all the participants (with possible benefits to the provider institution(s)’ business and community engagement (BCE) activities ).
Shared services may also mean something more than sharing the totality of major systems, and may be more usefully considered in terms of sharing of functions, rather than applications in line with service oriented approaches and the e-Framework for Education and Research .
There are examples already in the sector where these models have been established and are working well, ranging from national bodies running infrastructure services such as the JISC itself, to consortium type arrangements between institutions sharing a mix of services, and to research and teaching arrangements amongst institutions.
Project outputs
- provide advice and guidance to institutions embarking upon sharing services, addressing the particular requirements of senior managers working in the technical, procurement and strategic management functions
- inform the planning of future JISC activities investigating the cultural / organisational change management impact of different shared approaches to the delivery of services within institutions
- provide briefing materials for the Funding Councils - it is anticipated that this future work will align closely with HEFCE’s planned shared services pilot projects (building on current HEFCE feasibility studies and business case development exercises) to help contextualise the activity in relation to broader strategic themes and intentions. The Scottish Funding Council has also expressed particular interest in the outcomes of this study as a source of advice on future potential initiatives on shared services