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Local Government Shared Services

October 5, 2009 in Corporate Services, Public Services, Shared Services and Outsourcing

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Photo:JoshuaDavisPhotography, Flickr

Photo:JoshuaDavisPhotography, Flickr

In August 2009, Hertfordshire County Council transferred human resources transactional team members to the facilities management company SERCO.

This move builds on existing relationships and service privsion by the private sector partner, which has delivered payroll services to the council for more than two years.

The new service together with the introduction of new technology is expected to enable the elimination of paper from the payroll service and removal of existing duplication of effort within the business process.

As new integrated technologies are implemented for human resources and payroll, organisations are gradually taking the opportunity to develop new, more integrated ways of working between these functional teams. This transfer appears to be the latest example of organiations taking steps in this direction. 

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Public Sector Shared Services and Outsourcing

October 1, 2009 in Corporate Services, Public Services, Shared Services and Outsourcing

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Photo:Covilha, Flickr

Photo:Covilha, Flickr

As purse strings tighten, high-quality front-line public services should be protected as much as possible. Nonetheless, core services shouldn’t be treated with kid gloves or complacency. Both front-line and back-office teams need to be proactive in identifying how to save money.

Back-office teams will face pressure to adopt outsourcing and shared services to save costs. Evidence shows these solutions can reduce costs and improve quality, though examples of failure aren’t hard to find.

New services don’t always deliver the lower “headline” costs expected and poor quality can create major hidden expenditure linked to correction and re-working activity. A short-sighted focus on cost-cutting can weaken effectiveness across the whole organisation.

Management should consider how effective back-office teams contribute to cost-control across the business. It would be unwise to reduce costs in one area but find the organisation spends far more elsewhere. Read the rest of this entry →

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Centralising HR Transactions will save £1m

September 14, 2009 in Corporate Services, Shared Services and Outsourcing

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iStock_000004133986XSmallThe London Borough of Tower Hamlets is the latest public sector organisation to announce its decision to centralise transactional human resources services into a single service centre.

As part of a plan to strengthen HR business partners’ focus and contribution to the organisation, the council plans to save £1m each year while improving services through more efficient work practices in routine transactional services.

In future, recruitment, payroll and pensions administration will be delivered from a service centre – rather than within local business units.

The council expects to be able to manage the transition without imposing compulsory redundancies though does anticipate making savings through reductions in staffing levels.

 

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