Gartner Research

Public-Sector Shared Services Must Maintain Their Commercial Relevance

Published: 23 January 2014

ID: G00260729

Analyst(s): Bryan Pagliano , Neville Cannon

Summary

Governments under pressure to implement austerity measures will turn to shared services for cost savings. Failure to invest in service innovation, staff skills and client engagement will result in an increasingly uncompetitive offering.

Table Of Contents
  • Impacts

Analysis

  • Development Problems for Mature Shared Services

Impacts and Recommendations

  • A singular focus on the cost optimization benefits of shared services will cause shared-service executives to delay investments, thus eroding service relevance to their clients
  • Shared-service providers must demonstrate an improving track record of delivering value and service innovation within the first three years or face the likely prospect of the SSC being disbanded or sold to commercial outsourcers
  • Cloud-based solutions without an adequate framework will exacerbate the dilution of the service relevance to the customers and increase politically motivated demand for the SSC to demonstrate its commercial competitiveness

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