Shared services "can produce economies of scale"

Oct 6 2008 10:07AM

Local authorities believe that shared services need to be reliable and deliver services cost effectively, according to research.

The survey by Capita Software Services reveals that 80 per cent of those questioned believe that the shared services approach can help an authority gain economies of scale.

However, it also highlights the continued belief that shared services in local government are seen as more of a vision than a reality.

Ian Gates, director of Capita Software Services, comments: "The issue still remains how to bridge the gap between supporting the move to shared services and actually delivering them."

He believes that external partners with "expert flexible resources" can act as a co-ordinator for shared services projects in order to remove "the burden of change" and allow authorities to concentrate on day-to-day activities.

Shared services can lead to efficiency savings and service improvements, according to one industry analyst.

Mr Bohl, author of a Society of Local Authority Chief Executives report on sourcing, says shared services are "gaining momentum".