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Commission on the Reform of Ontario's Public Services

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Expanding Shared <strong>Services</strong> to <strong>the</strong> Broader <strong>Public</strong> Sector<br />

Cost Efficiencies through <strong>the</strong> Expansi<strong>on</strong> <strong>of</strong> Shared <strong>Services</strong><br />

To keep pace with <strong>the</strong> rising expectati<strong>on</strong>s <strong>of</strong> citizens for high-quality and cost-effective public<br />

services, <strong>the</strong> OPS introduced shared back-<strong>of</strong>fice services in <strong>the</strong> late 1990s. Am<strong>on</strong>g <strong>the</strong><br />

services c<strong>on</strong>solidated were back-<strong>of</strong>fice functi<strong>on</strong>s (such as payroll, financial transacti<strong>on</strong>s,<br />

procurement, collecti<strong>on</strong>s and insurance) and comm<strong>on</strong> administrative services (such as<br />

printing, mail, translati<strong>on</strong> and asset management) into <strong>on</strong>e integrated and specialized<br />

organizati<strong>on</strong>. While this is a good example <strong>of</strong> how Ontario has transformed <strong>the</strong> operati<strong>on</strong>s <strong>of</strong><br />

<strong>the</strong> OPS, it is just <strong>the</strong> tip <strong>of</strong> <strong>the</strong> iceberg in terms <strong>of</strong> cost-saving practices that could be<br />

extended fur<strong>the</strong>r to <strong>the</strong> BPS.<br />

Recommendati<strong>on</strong> 16-13: Selected shared services should be expanded to agencies, boards<br />

and commissi<strong>on</strong>s (ABCs) and <strong>the</strong> broader public sector.<br />

This would include I&IT c<strong>on</strong>solidati<strong>on</strong>, supply chain management, back-<strong>of</strong>fice functi<strong>on</strong>s and<br />

centralized maintenance. Given that <strong>the</strong> introducti<strong>on</strong> <strong>of</strong> shared services produced over<br />

$900 milli<strong>on</strong> in savings across <strong>the</strong> OPS, <strong>the</strong> magnitude <strong>of</strong> potential savings in <strong>the</strong> BPS is<br />

substantial.<br />

The <str<strong>on</strong>g>Commissi<strong>on</strong></str<strong>on</strong>g>’s recommendati<strong>on</strong>s address four main areas where shared services could be<br />

expanded to <strong>the</strong> BPS: I&IT transformati<strong>on</strong>, supply chains, back-<strong>of</strong>fice c<strong>on</strong>solidati<strong>on</strong> and<br />

centralized maintenance. O<strong>the</strong>r chapters in this report also discuss <strong>the</strong> importance <strong>of</strong> shared<br />

services and back-<strong>of</strong>fice efficiencies. 11<br />

11 For more <strong>on</strong> sector-specific approaches, please see Chapter 5, Health, Chapter 6, Elementary and Sec<strong>on</strong>dary Educati<strong>on</strong>, and Chapter 8,<br />

Social Programs.<br />

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