Picture of Big Ben
NHS and Prison Service on course but still limited savings

Shared services not delivering, says NAO

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

Written by Computing staff

Government shared services programmes are not delivering the levels of administrative savings that is possible, according to the National Audit Office (NAO).
The Cabinet Office estimates Whitehall departments could save £1.4bn per year by centralising finance and human resources (HR).

But though projects going ahead in the NHS and HM Prison Service are on course for significant cost savings, progress across the sector is slow.

Sir John Bourn, head of the National Audit Office, said: "Central government needs to get much better at managing its corporate services.

"Shared services have the potential to deliver significant efficiency savings but it is not yet clear that the £1.4 billion of savings estimated by the Cabinet Office will be achieved."

Programmes are in place across government – including the Flex desktop scheme kicked off by the Cabinet Office in the summer – but reported savings are small so far. In March, total reported savings stood at £1bn, £315m of which related to finance and HR. But how much of the figure was related to shared service projects.

Tags:

reader comments

related articles

Picture of Whitehall

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

Public sector shares admin

Government could save £2.8bn per year, says analyst 20 Sep 2007

Whitehall plans web accounts

Government proposal is part of wider plans to join up service delivery 13 Sep 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

Whitehall acts on shared IT

Two large departments will provide services for smaller ministries 22 Mar 2007

Review 2008: Top 10 green IT stories

Green computing is fast becoming a requirement as the financial crisis calls for more efficiency on energy use - we look back at the year's highlights 30 Dec 2008

Whitehall departments reveal IT carbon emissions

Departments of Health, Work and Pensions, Business, Justice and Foreign Office leading the way in implementing government green IT strategy 24 Apr 2009

Review 2008: Top 10 government IT stories

Major IT projects in the public sector have come under threat in 2008 as the financial crisis hits public spending 24 Dec 2008

related whitepapers

today's top stories

Lack of enterprise appeal takes shine off Chrome OS

Enterprise buyers unlikely to ditch Windows for Chrome OS in the near term, say experts 09 Jul 2009

How Satyam cleaned up its act

Chief executive CP Gurnani tells Angelica Mari why Tech Mahindra opted to keep the Satyam brand after it bought the scandal-hit services firm, and explains what the deal means for existing and prospective customers 09 Jul 2009

Open source bites back

Recession-hit companies are tired of vendors holding a gun to their heads over software licensing, says CEO of Ingres 09 Jul 2009

"We will ensure Britain remains at the forefront of the digital revolution"

As new trials of superfast broadband get under way, minister Pat McFadden explains the government’s digital vision 09 Jul 2009

Put social networks to work on your career

Increasing numbers of IT professionals using sites such as LinkedIn to grow contacts and find jobs 09 Jul 2009

Advertisement

Newsletter signup

Sign up for our range of FREE newsletters:

More available - click 'submit' to view

Existing User

Newsletter user login:

Advertisement

Jobs

Related jobs

Job of the week

Job alerts

Sign up here

Find your next job

IT Salary Checker

Check salary here

Advertisement

White papers

Search white papers

Top categories

VPN, Extranet and Intranet Solutions

WAN/ LAN Solutions

Network Security

Interoperability-Connectivity

Grid/ Utility Computing

Latest poll

Would you use social networking sites to look for a job?

Would you use social networking sites to look for a job?

Tell us what you think about job hunting through LinkedIn, Facebook, Twitter etc

View poll results

Latest audio and video articles

network cablesVideo

How to maximise the value of your IT networking investment

A panel of experts discuss networking strategies that deliver real value to business 03 Jul 2009

green footprintsVideo

How to manage enterprise energy use - and the role IT can play

A panel of experts explore how firms can get to grips with their carbon footprint and make smarter use of energy 01 Jul 2009

Latest in-depth articles

Google ChromeAnalysis

Lack of enterprise appeal takes shine off Chrome OS

Enterprise buyers unlikely to ditch Windows for Chrome OS in the near term, say experts 09 Jul 2009

Satyam CEO CP GurnaniNews

How Satyam cleaned up its act

Chief executive CP Gurnani tells Angelica Mari why Tech Mahindra opted to keep the Satyam brand after it bought the scandal-hit services firm, and explains what the deal means for existing and prospective customers 09 Jul 2009

Advertisement

Primary Navigation