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What is a shared service? - LGSS

What is a shared service?

A shared service is a collaboration between two or more organisations Рsharing investment, running costs, staff and resources with a view to increasing efficiency, savings and improving services. Public shared services are becoming increasingly popular in and across sectors such as health, social care, education and emergency services.

Thanks to current legislation, many public sector organisations can delegate the running of whole departments to a shared service.

Commercial outsourcing vs public shared services

If you want to buy a service or product commercially (not through a shared service partnership) there are strict procurement rules that you need to follow.

A number of suppliers must be given the opportunity to compete for your contract, and while this sounds good in principle, the reality is that the legal procedure can take years to carry out, costing millions of pounds.

Here we weigh up the differences between outsourcing to a private company, and working with a public shared service.


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