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Creating outsourced shared services arrangements: Lessons from the public sector

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  • McIvor, Ronan
  • McCracken, Martin
  • McHugh, Marie

Abstract

Shared services arrangements have been viewed as a strategy for achieving efficiencies and improved service in back-office functions such as finance and accounting, human resource, and procurement. Organisations have been increasingly turning to vendors to implement and manage outsourced shared services arrangements. Analysing the experiences of a public sector organisation, this paper provides a detailed understanding of the issues involved in creating outsourced shared services arrangements. The findings have the highlighted the importance of strong governance to drive standardisation and performance improvement, and relationship building both internally with the staff affected by the changes and externally with vendors. Failure to implement a standardised approach will hinder an organisation from fully leveraging the specialist capabilities of external vendors.

Suggested Citation

  • McIvor, Ronan & McCracken, Martin & McHugh, Marie, 2011. "Creating outsourced shared services arrangements: Lessons from the public sector," European Management Journal, Elsevier, vol. 29(6), pages 448-461.
  • Handle: RePEc:eee:eurman:v:29:y:2011:i:6:p:448-461
    DOI: 10.1016/j.emj.2011.06.001
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    References listed on IDEAS

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    1. McIvor, Ronan, 2008. "What is the right outsourcing strategy for your process," European Management Journal, Elsevier, vol. 26(1), pages 24-34, February.
    2. Currie, Wendy L. & Michell, Vaughan & Abanishe, Oluwakemi, 2008. "Knowledge process outsourcing in financial services:: The vendor perspective," European Management Journal, Elsevier, vol. 26(2), pages 94-104, April.
    3. Barthélemy, Jérôme, 2003. "The Hard and Soft Sides of IT Outsourcing Management," European Management Journal, Elsevier, vol. 21(5), pages 539-548, October.
    4. Hüseyin Tanriverdi & Prabhudev Konana & Ling Ge, 2007. "The Choice of Sourcing Mechanisms for Business Processes," Information Systems Research, INFORMS, vol. 18(3), pages 280-299, September.
    5. Andrea Masini & Zeinep Aksin Karaesman, 2008. "Effective strategies for internal outsourcing and offshoring of business services: An empirical investigation," Post-Print hal-00516139, HAL.
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    Cited by:

    1. Richter, Philipp Clemens & Brühl, Rolf, 2017. "Shared service center research: A review of the past, present, and future," European Management Journal, Elsevier, vol. 35(1), pages 26-38.
    2. Knol, Arjan & Janssen, Marijn & Sol, Henk, 2014. "A taxonomy of management challenges for developing shared services arrangements," European Management Journal, Elsevier, vol. 32(1), pages 91-103.
    3. Timea Lazar, 2017. "The Shared Service Centre (Ssc) €“ A New Business Concept," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 657-667, July.
    4. Robert Karaszewski & Paweł Modrzyński & Joanna Modrzyńska, 2021. "The Use of Blockchain Technology in Public Sector Entities Management: An Example of Security and Energy Efficiency in Cloud Computing Data Processing," Energies, MDPI, vol. 14(7), pages 1-19, March.
    5. Braun, Corina & Hadwich, Karsten, 2016. "Complexity of internal services: Scale development and validation," Journal of Business Research, Elsevier, vol. 69(9), pages 3508-3522.
    6. Paagman, Arnaud & Tate, Mary & Furtmueller, Elfi & de Bloom, Jessica, 2015. "An integrative literature review and empirical validation of motives for introducing shared services in government organizations," International Journal of Information Management, Elsevier, vol. 35(1), pages 110-123.

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