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Shared services: Doing more with less
Payroll shared services will reduce the cost for maintaining a good number of system applications fragmented in around 12,637 central government spending agencies and 179 regional treasury offices of the Finance Ministry.
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In the era of Industry 4.0, in which the government comes under constant pressure to seek ways and means of “doing more with less”, shared services as an alternative service delivery model needs to be considered. (Shutterstock/File)
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n the era of Industry 4.0, in which the government comes under constant pressure to seek ways and means of “doing more with less”, shared services as an alternative service delivery model needs to be considered.
Shared services is a business model using information technology as an enabler to provide better service with fewer resources. With the impact of widely available cutting-edge technology in improving government public service delivery and the rapidly gaining popularity of shared services among the public sector, will the Indonesian government follow suit?
Multinational professional services company Accenture defines shared services as the consolidation of administrative or support functions (such as human resources, information technology and procurement) from several departments or agencies into a single, stand-alone organizational entity whose only mission is to provide services as efficiently and effectively as possible.
Shared services have been commonly practiced not only in the private sector but also in the public sector.
In the public sector or government budget and finance realms, the shared services model works to support functions such as payrolls, utility bills (electricity and water) and other common expenses. By implementing shared services, the organization expects to push down costs, gain efficiency and focus on public service improvements.
At the heart of shared services is information technology (IT), which empowers service providers. IT in shared services replaces the numerous traditional and fragmented existing systems.
In developing the shared services IT system, the government may opt for either developing an application system in-house or buying off-the-shelf commercial software.
