Cabinet Office Chief Information Officer

Joined–up behind the scenes

It is not logical for each government organisation to have its own expensive, human resources, IT, pay and other systems. It is a waste of money and staff time. Cabinet Office is promoting the use of shared corporate services across Whitehall to enhance efficiency, effectiveness and employee experience.

• Over half of all central government employees are now customers of shared corporate services. Discussions are taking place between departments about sharing not only corporate services, but IT infrastructures and delivery contracts, buildings, call centres and even staff.
• Government corporate services will be delivered through a handful of professional organisations – serving a minimum of 20,000 staff.
• People will have control of their information, enjoying the highest levels of assurance, transparency and self-service.
• To avoid duplication, the Department of Work and Pensions (DWP) and Her Majesty̱s Revenue and Customs (HMRC) have been designated providers of shared services to smaller departments. The Department of Work and Pensions is due to provide the Cabinet Office with shared human resources, finance and procurement services in 2008. This process will help other Departments understand the mechanism by which small departments buy services from larger ones.

Most large and medium scale departments are now engaged in running shared corporate services within their organisations

• In its first year of operation the Department for Work and Pensions’ Shared Services organisation, serving 110,000 staff, was able to reduce its costs by 15% in real terms, equating to around £17 million. A further 15% saving is on track to be achieved in 2007/2008.
• The Shared Service Centre operated by HM Prison Service, based at Newport, provides finance, procurement and (by the second quarter of 2008) HR services for all 128 Prison Service establishments, totalling 48,000 staff. The Centre also provides finance services for Home Office staff, and other services will be rolled out progressively during 2008/09, including a new Home Office Centre of Excellence for procurement.
• The Home Office's Estates Shared Service, which provides shared property services to the Home Office and Ministry of Justice, has put in place new framework contracts with 12 suppliers, replacing about 200 previous contracts and supplier arrangements, estimated to deliver value for money benefits of over £20 million a year.
• The Ministry of Defence’s People Pay and Pension Agency and Military Personnel Management made efficiency savings of £30 million and £38 million respectively in the year end March 31st 2007. Through sharing and related reforms, the Department is expecting a net benefit of over £300 million over the next 10 years.
• The Department for Transport has re–scoped its current Shared Service Programme and has a gross benefits target of £94 million to 2014/15. In addition it is quantifying further potential savings from improving routine procurement and better management information.
• DIUS’s seven UK Research Councils, champions of research, training and innovation, have this year set up their new Shared Services Centre based in Swindon, the Research Councils UK Shared Services Centre Ltd (RCUK SSC Ltd). The RCUK Shared Services Centre will, serve over 12,000 Research Council employees, and support approximately 30,000 researchers

Further guidance and a toolkit that provides shared services examples, guidelines and templates are available online at http://www.cio.gov.uk/shared_services/toolkit/index.asp.

This table [PDF, 59KB] sets out the progress made on developing corporate shared services across government.

Public sector flex

Flex is a new way of delivering office information technology services to government organisations. Flex is a model for the future of public sector technology services – customer focused, joined–up, professionally delivered. It is a shareable IT service available to all public sector organisations with a low cost, high quality, security–accredited desktop facility as its core. Flex also provides organisations with the opportunity to enhance and expand the total IT provision to fit their unique needs.

At less than half the cost of the benchmarks established by external auditors in 2005, Flex is cheaper per user than many existing systems.

We estimate there are over 4 million desktops in the public sector. Departments are now challenged to reduce their cost down to the levels attained by Flex. There is the potential for large savings. A £100 saving per desktop per year would save £400 million per annum. As all public sector bodies can use the Flex infrastructure, contracts and design so they can reap the same rewards.

Already, the Office for National Statistics (ONS), the Department of Innovation Universities and Skills (DIUS) and the Children and Family Court Advisory and Support Service (CAFCASS) have joined the Cabinet Office in committing to Flex, and others are assessing the benefits.

Already, the Office for National Statistics (ONS) and Department of Innovation Universities and Skills (DIUS) have joined Cabinet Office in committing to Flex and others are assessing the benefits.

• Cost savings: through economies of scale, lower procurement costs and reduced energy bills.
• Performance improvements: through facilities for collaborative and mobile working and a service-led architecture to eliminate duplication and waste.
• Flexibility: through tailored solutions built around a proven core.
• Environmental benefits: through energy savings, reuse and recycling, reduced travel miles and a lower carbon footprint.