Outsourcing and shared services are key to delivering deep public sector spending cuts

Advanced Computer Software Group plc provides its thoughts on the Comprehensive Spending Review cuts

The Comprehensive Spending Review 2010 has delivered the biggest budget cuts since 1976. Following the Treasury’s announcement, Advanced Computer Software Group plc is urging the public sector to consider outsourcing non-business critical functions or moving these across to a shared services arrangement.

“The public sector has been stricken with delivering budget cuts greater than I have ever experienced in my working life”, says Vin Murria, CEO of Advanced Computer Software Group plc. “Desperate times call for significant cost cutting measures and with outsourcing and shared services having the capacity to deliver dramatic cost savings, these initiatives need to be given serious consideration by the Government and public sector organisations”, adds Murria.

Outsourcing non-business critical functions such as ICT, finance and human resources can provide considerable cost savings compared with maintaining these non-core functions in-house. Managing all ICT internally, for example, requires significant ongoing investment into skilled IT professionals, ICT infrastructure and software applications. Outsourcing ICT to specialists that already have all the necessary ICT infrastructure and IT professionals in place enables organisations to take advantage of economies of scale and thereby negotiate highly competitive contracts with their suppliers.

The Nursing and Midwifery Council (NMC) is one such organisation that has recently outsourced its ICT, signing a five-year contract worth £5.2 million with Advanced Computer Software Group. Advanced is now managing and hosting the organisation’s IT infrastructure across two different data centres. The NMC previously managed its services in-house with four IT staff, who have joined Advanced.  

Murria says: "The NMC is the latest of many organisations that have recognised their IT and communications infrastructure can be provided more efficiently and economically by specialist providers such as Advanced."

Similarly, by moving non-business critical functions across to a collaborative arrangement, otherwise known as a shared service, the costs and resources can be shared between all the collaborating organisations. Public sector organisations that have already gone down this route and are reaping the benefits include Three Rivers District Council and Watford Borough Council, which use the same Advanced financial management system (FMS) within a shared services environment. This FMS incorporates integrated electronic procurement, budgeting and forecasting and document management and imaging software solutions.

Murria says, “Government departments and public sector organisations that need to seriously cut their costs over the next four years should look towards outsourcing or shared services models. These will undoubtedly deliver the dramatic cuts that many public sector organisations will be seeking and the Treasury will be expecting.”

For further Advanced Computer Software Group information and opinion about the Comprehensive Spending Review, visit www.csr10.com

 -ENDS-

Notes to Editor

About Advanced Computer Software Group plc www.advancedcomputersoftware.com            

Advanced Computer Software Group plc (Advanced) is the leading supplier of software and IT services to the public, not-for-profit and commercial sectors with a primary focus on delivering high quality products and services to enable first class delivery of care in the community.

Advanced’s managed services division, Business Systems Group (soon to be Advanced 365), delivers the core utility components of customers’ IT operations including monitoring, backup, email and hosting. BSG also provides application development. Delivery of customers’ IT can be either as a hosted service that is managed via the BSG data centre suite, remotely from customers’ comms rooms, as part of a cloud-based service via one of the many public cloud platforms available, or as a hybrid solution utilising a combination of these delivery environments based upon customer requirements.

Contacts:

Liz Ebbrell, Advanced Computer Software Group plc

Liz.ebbrell@advancedcomputersoftware.com  

+44(0)1625 856505 or 07917 634 705