Shared services, shared objectives

The results of the government's comprehensive spending review are due next month and both the public and private sector are bracing themselves to deliver 'more for less'. How this will be achieved is under much debate, but outsourcing is one of the service delivery methods under consideration. A recent survey conducted by Capita and Dod's among 1,400 civil servants revealed the perception that the government can only reduce departmental budgets by an average of 11% without affecting services. This suggests that to achieve the 40% savings as set out in the budget, greater innovation and cross sector collaboration is required. Central government has historically used outsourcing to deliver new services, rather than to reform or modernise existing ones. The shared focus for both public and private sectors to improve services while reducing costs presents an opportunity to play on each other's strengths, bridging the gap in delivering quality services efficiently. The survey revealed that civil servants are concerned about working with, or moving across into, the private sector. A lack of trust towards the private sector was raised by 38% of respondents and 25% perceived there to be poor management of staff. There are, however, many examples of successful public/private collaborations, such as Capita and Birmingham city council's joint venture company Service Birmingham. This venture has delivered £152m in savings since the start of its partnership in 2006 through improvements including network management and communications infrastructure. This is a clear demonstration of a collaboration working well and is a model that could be deployed across central government with equal success. Weakness The survey highlighted that 26% of respondents perceived central government to be lacking in innovation, but 25% felt that the sector is strong on diversity. Conversely, innovation was perceived by 41% of respondents as a strength of the private sector, although 25% cited their weakness to be a lack of diversity. Regardless of whether these perceptions are the case, it can be inferred that where one sector has a weakness, it can be complemented by the other through collaboration. Civil service customer insight, motivation and experience for example are skills to tap into and strengthen with the private sector's experience and skills in technology, process and financial management. Another important factor in successful collaboration is for partners to agree shared objectives that reflect the strengths of the respective parties. This will ensure clarity regarding accountability, performance criteria in working together and transparency. Cross-sector collaboration can help to drive change, transform services while remaining flexible to market needs. Importantly, it can meet the brief of delivering more for less during this period of austerity without negating the quality of service delivery. Patrick Smith is Capita 's market director, central government