The contract has not yet been awarded, but the Government is looking to have their ISSC 2 operating partner in place by March 2014 or earlier.
The UK Government’s Independent Shared Service Centres
Details of the UK Government’s Next Generation Shared Services has been emerging since December 2012, when the Cabinet Office announced fundamental changes to the way the Government shares its corporate services to improve efficiency across departments.
Through the Next Generation Shared Services programme, the UK Government aims to achieve savings between £400 and £600 million a year in administration costs though shared services in HR, procurement, finance and payroll of government departments and arms-length-bodes. The Next Generation Shared Services strategic plan calls for the creation of two Independent Shared Service Centres.
The first independent shared services centre (ISSC1) was awarded to arvato UK & Ireland, a business process outsourcing (BPO) partner, to provide back office support to the Department for Transport (DfT).
The second shared services centre, ISSC2 will be the divestment of shared service centers currently operated by the Department for Work and Pensions, Department of Environment and Rural Affairs (Defra) and the Environment Agency. The chosen bidder will own 75 % of the equity of SSC.
There are reported initial concerns that jobs will be offshored The FT reports that the Cabinet Office delivered a staff briefing confirming that jobs will likely be offshored as sites in the UK are closed to develop centres of excellence.
Of the targeted £400-£600 annual savings, an estimated £128 million is to come from HR, payroll, finance, procurement moving to ISSC 1 and 2 with efficiency improvements and ERP consolidation.
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Autor(en)/Author(s): Sarah Feurey
Quelle/Source: Shared services link, 16.09.2013
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