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Government and Private Firm to run Shared Services Together
Source: http://www.publicservice.co.uk/news_story.asp?id=22579
Source Date: Thursday, March 28, 2013
Focus: Institution and HR Management
Country: United Kingdom of Great Britain and Northern Ireland
Created: Mar 28, 2013

A new centre that will help drive £600m out of the cost of government back office functions will be jointly run by the government and the a private firm, Cabinet Office minister Francis Maude has confirmed.

Independent Shared Service Centre 2, due to launch in 2014, will deliver payroll, HR, finance and procurement services to government departments in an attempt to reduce costs.

Economies of scale are also expected when the wider public sector  are invited to use services, with the potential for private companies to also become customers.

Maude announced that the new centre would be run as a joing venture to harness best practice from industry.

"Sharing services is a key part of the Civil Service Reform Plan – making government more unified, and enabling civil servants to focus on delivering exceptional public services," he said.

"The joint venture for the second Independent Shared Service Centre will help drive down the costs of back office services and offer a competitive proposition for additional customers. Future growth will also deliver even more value for the taxpayer."

Stephen Kelly, the government chief operating officer and head of the Efficiency and Reform Group added: "Lessons have been learned from previous attempts to consolidate back office functions, and we've listened carefully to outside scrutiny."
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