Report of the Local Government Efficiency Review Group

8.2 International Experience with Shared Services
8.2.1 The provision of shared services involving two or more local authorities has
also become more common internationally, although it remains the
exception rather than the rule of service provision. The trend in recent
years has shifted from an emphasis on shared services being pursued
purely on the basis of expected efficiencies and economies of scale, to a
wider consideration of shared services based on its potential for
improvements in service quality and better use of scarce or expensive
expertise.
8.2.2 There are examples of this approach being used in several cases in
countries such as the UK, France, the US and New Zealand. In many
cases, the traditional focus of shared service provision in different
jurisdictions has been on ‘back office’ support services and, in particular, the
routine transactional elements of ICT, HR and finance services. However,
this is also extending to ‘frontline’ services provided to the public, including
joint contact centres.
8.2.3 In the UK, for example, some ‘back-office’ areas that have been the subject
of increased collaboration between local authorities include:
• ICT systems and informational management system administration;
• Payroll;
• Financial services, such as accounts payable;
• Procurement;
• HR functions and personnel administration;
• Recruitment;
• Design of major roads schemes;
• Facilities and asset management;
• Records management;
• Legal services;
• Shared chief executive officer and management teams between
smaller district councils.
8.2.4 In terms of ‘frontline’ services, for example, a number of the London
boroughs and local authorities in other larger cities have come together to
form joint boards to provide certain services, such as transport services,
waste disposal and fire services. Others have come together to provide
joint one-stop-shop contact centres for members of the public.
8.2.5 Because of the very small size of many French municipalities, many local
authorities have made use of inter-municipal associations or consortia to
deliver services on behalf of a number of neighbouring local authorities.
Many of these have focussed on technical services, such as water, waste
management, public transport and to some extent on areas such as
planning and social housing.
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