Next Generation Back Office
Shared Services for Government
Supplier Conference
21 November 2011
John Collington – Chief Procurement Officer and Director General, Shared Services
Paul Marriner- Acting Director , Shared Services
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The Current Shared Services Landscape
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2 Options Considered
Option 1 - Crown Oversight
• Current services remain ‘as is’ BUT
• A Crown body is set up to oversee and
govern the future direction of those
services, including:
 Performance standards
 Collaborative approach taken to
Oracle R12 upgrade to reduce
overlap and associated spend
 Establishing benefit targets and
subsequent delivery
Option 2 - Crown Managed Shared
Services
• Consolidation of current shared
services in to a small number of ‘hubs’
which service all Department
requirements
• Crown body governs delivery and
strategy , including the following:
 Common performance standards
 Acts as contracting body for all major
suppliers
 Manages transition programme from
current to new
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Recommended Target Operating Model
Outsourced ISSC 1
Large & Small Orgs – c.40-50,000
Shared Service
Contact Centre
Case management and telephony solutions
Procurement
Transactions
Case
Management
Systems and Support
Shared Service
Contact Centre
Case management and telephony solutions
MI and
Analytics
Management
Information &
Analytics
NHS\DH JV
Oracle
c. 100,000
HR & Payroll
Transactions
Case
Management
Strategy
Development
Performance Management & Reporting
Systems and Support
Service Management
Customer Relationship
Shared Service
Shared Service
Contact Centre
Case management and telephony solutions
Procurement
Transactions
Case
Management
Systems and Support
Business
Assurance
MI and
Analytics
Management
Information &
Analytics
Contact Centre
MOJ\HO
Oracle
c.150,000
Case management and telephony solutions
HR & Payroll
Transactions
Case
Management
F&A
Transactions
Case
Management
Procurement
Transactions
Case
Management
Systems and Support
Performance Management & Reporting
Service Management
Service Management
Shared Service
Customer Relationship
Contact Centre
Service Management
MOD
Oracle
c.75,000
Ex SPVA
Customer Relationship
Customer Relationship
Case management and telephony solutions
F&A
Transactions
Case
Management
Procurement
Transactions
Case
Management
Systems and Support
MI and
Analytics
Management
Information &
Analytics
Customer Relationship
Contact Centre
Case management and telephony solutions
SSC Management
HR & Payroll
Transactions
Case
Management
Shared Service
HR & Payroll
Transactions
Case
Management
Performance Management & Reporting
F&A
Transactions
Case
Management
Procurement
Transactions
Case
Management
Systems and Support
Performance Management & Reporting
Service Management
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MI and
Analytics
Management
Information &
Analytics
SSC Management
Performanc
e
NHS\DH JV
Oracle Managemen
c. 100,000
t
Performance Management & Reporting
MI and
Analytics
Management
Information &
Analytics
SSC Management
HMRC
SAP
c. 75,000
F&A
Transactions
Case
Management
SSC Management
HR & Payroll
Transactions
Case
Management
MI and
Analytics
Management
Information &
Analytics
Procurement
Transactions
Case
Management
Performance Management & Reporting
Contract
Management
Service Management
Customer Relationship
F&A
Transactions
Case
Management
SSC Management
F&A
Transactions
Case
Management
SSC Management
HR & Payroll
Transactions
Case
Management
Joint Venture ISSC 2
ERP c. 175,000
Crown Shared
Service
Governance
Key Strategic Principles
These Include:
1.
Performance monitoring of ALL SSCs
- performance through competition.
2.
Independent delivery - no Department will deliver services from the two ISSCs
3.
Crown Management and Crown as the Contracting Authority for the 2 ISSCs
3.
Private Sector involvement through divestment
4.
A service for Smaller Departments
3.
Implement a single, Value for Money, ERP solution in ISSC 2; and
3.
Operate on a single set of processes to ensure performance can meet upper quartile benchmark
levels.
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Core and Optional Service Offerings
The key principles of the Service offerings are:
1. Only pay for what you need. i.e. Grants admin is optional
2. Need to take all core processes that are end-to-end i.e. P2P
3. Consultancy type services is optional to preserve VAT refund for Core services
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Proposed Transition Governance
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Proposed Transition Plan
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Taking Advantage of ERP in the cloud
Software
Layer
(Finance / HR /
Payroll/ CRM/
Procurement)
Multiple
ERPs
Tier 1 or 2
ERP
Single
ERP
Hardware
Hosting
Layer
Multiple
Installations
Single
On-Premises
Installation
Private Cloud
Support
Layer
Multiple
Support Orgs
Single
Support Org
3rd Party
Single
Support Org
Estimated Potential
Saving
40%
Estimated Potential
Saving
65-70%
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ERP
“Software as a
Service” (SaaS)
Public Cloud
“Pay per use”
Estimated Potential
Saving
??%
What Do Suppliers Need to Consider?
Shared Services is about raising performance but also about
saving money. This means we will:
1. look to consolidate services
2. look to use new technology and services such as
Cloud which drive better VFM – what is the opportunity?
3. re-use before we re-buy
4. not be ‘Gold-Plating’ our services.
But there will be opportunities around:
• BPO for Back Office functions within ISSC 2
• ERP transition services– both Tier 1 and 2
• BPO Transition services
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