[LINK] The other side of shared services: UK Transport Dept collapse

[Richard Chirgwin]

Hi all,

Since the idea of shared services in government computing has been on 
the list lately, here's an example of the other side of it:

http://www.theregister.co.uk/2008/05/23/shared_services_costs_money/

> Shared services - where several government departments share resources 
> in order to save money - might seem like an easy way to reduce costs 
> within the government. But the Department of Transport's complete 
> failure to link human resources, payroll and finance functions for six 
> departments might sound the death knell for the cunning plan.
>
> The National Audit Office report shows the Department of Transport 
> expected setting up the project to cost £55.4m and to make gross 
> savings, before costs, of £112.4m by 2015. This would bring HR, 
> payroll and finance functions into one office supporting six 
> departments such as the DVLA and Driving Standards Agency with 23,000 
> staff members in total.
>
> But forecasts at March 2008 showed costs had risen to £121.2m and 
> predicted gross savings of £40.1m. Even assuming the most generous 
> possible savings by the Department - of £50m a year - the project will 
> still not achieve break-even until 2012-2-13 - seven years after the 
> project began.
>
...etc

Richard Chirgwin