CIOs unconvinced by shared services

IT chiefs doubt push towards shared services will save enough money

Half of European public-sector IT chiefs do not believe shared services will deliver sufficient cost savings, according to a new report by analyst firm Ovum.

With governments across the globe implementing purse-tightening austerity measures, shared services have been seen as an ideal mechanism for delivering value-for-money IT programmes, said Jessica Hawkins, an analyst with Ovum.

"The move to shared services does involve upheaval and invariably means changing software applications, which in turn can require system and data migration and all the complexity that this entails," she said. "Many agencies believe there is not enough money to be saved to make this worthwhile."

Half of the European CIOs surveyed by Ovum cited concerns that shared services would not save enough money. Those concerns were mirrored by counterparts in the US.

Four out of 10 European public-sector IT chiefs also worried that shared services would result in a loss of control over key parts of their operations.

Separate research carried out by analyst group K2advisory found that 40 per cent of UK public-sector organisations will use some shared services by the end of 2011.

Already central government departments including the Home Office have moved some IT functions to a shared services model, as have local councils including Westminster and Bury.

More European bodies look set to press ahead with the move to shared services over the next two years, added Ovum's Hawkins, as budgetary pressures continue to bite.