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Outsourcing and Shared Services in Government IT Management (Review Report)

Product Type: Market Research Report
Published by: Datamonitor
Published: July 2007
Product Code: R313-23959
Description
Introduction

Shared services offer clear opportunities to both public bodies and to the technology vendors trying to meet their needs. This report explores the market conditions for shared services in government, the strategies of governments themselves and the technology challenges.

Scope

  • Shared Services and the Future of Technology Adoption in Government (Market Focus)
  • Understanding Shared Services Opportunities in Government (Strategy Focus)
  • Meeting the Technology Challenge of Shared Services in Government (Technology Focus)
  • Shared Services and Outsourcing in US and European Government (Databook)


    • Highlights

    This report combines all three briefs from the outsourcing and shared services in government IT management theme for 2007.

    Reasons to Purchase

  • The market focus section provides an overview of drivers and trends across the government sector.
  • The strategy focus briefs consider the strategies that government is using to handle its challenges incorporating shared services.
  • The technology focus looks at the technology issues in shared services and how vendors can meet them.
    • Table of Contents
    Overview
    Catalyst
    Summary
    Executive Summary
    Introduction
    Shared Services and the Future of Technology Adoption in Government (Market Focus)
    Understanding Shared Services Opportunities in Government (Strategy Focus)
    Meeting the Technology Challenge of Shared Services in Government (Technology Focus)
    Shared Services and Outsourcing in US and European Government (Databook)
    Table of Contents
    Table of figures
    Table of tables
    Shared Services and the Future of Technology Adoption in Government (Market Focus)
    Summary
    Policy makers are increasingly interested in making use of shared IT services
    Shared services are an approach to business organization
    Shared services can be formed using a variety of different structures
    Shared services has strong benefits as an approach to IT intensive business functions
    Government is under pressure to realize the benefits of IT systems
    IT investment in the public sector is low, but current circumstances present reorganization opportunities
    Investments in eGovernment left the back office untouched, but created another pressure for change
    Shared services have the potential to generate significant demand for IT solutions and services
    Strong political will is vital to the success of shared services in the public sector
    Wait and see culture will hold up the adoption of shared services
    Managers have little incentive to share services without pressure from above
    Shared services projects will form an increasing proportion of IT services revenue
    European public sector IT services spending set to almost equal the US by 2012
    Outsourcing will form an increasing component of shared services projects
    Revenue for IT services vendors from shared services will grow by 26% CAGR in the next five years
    Actions
    Understanding government need is vital to taking advantage of shared services
    Vendors need to provide a clear business case and successful case studies
    Understanding Shared Services Opportunities in Government (Strategy Focus)
    Summary
    Most governments are considering the employment of a shared services strategy
    The Canadian experience has both positive and negative lessons for other governments
    The approach, the service in question and the right structure will determine strategy
    Leadership and governance will be crucial to the success
    Clear top down drive is vital to the realization of shared services
    The structure for governing the system is as important as the physical infrastructure
    Agreed technological standards for the common platform are essential
    Most shared services are driven by agency specific changes
    A shared service approach will migrate to higher value functions
    Business functions with wide use and the potential for automation will deliver the greatest savings
    Human resource and financial functions are common shared service targets in the medium term
    Shared services will evolve over time to incorporate higher value functions
    ACTIONS
    Governments need to put in place the right leadership and governance for success
    Vendors need to target the right opportunities for the short, medium and longer term
    Meeting the Technology Challenge of Shared Services in Government (Technology Focus)
    Summary
    Shared services will generate demand for a wide range of IT services
    Standardization is the main technology challenge facing governments adopting a shared service
    Shared services will generate demand for a wide range of IT services
    The medium term opportunities from shared services will come from outsourcing
    A wide variety of shared service models will be used to meet different business needs
    Political considerations can be as important as maximizing value in the choice of model
    Financial considerations will not be limited to total cost
    Existing assets will play a key role
    The level and type of government agencies will shape the controls required
    Broad and narrow political interest will be decisive
    Vendors need to carefully examine the consequences of a particular contract structure
    Many government agencies will move slowly up the solutions stack with shared services
    Slow creep experiments with sharing will begin at a pure infrastructure level
    The spread of service orientated architecture (SOA) will drive shared services
    Compatibility and integration are the key prerequisites of successful shared services
    Actions
    Adapting to the right shared service model will be crucial to success
    Vendors will need to offer government the scale to cope with their technology needs
    Pursing an SOA technology story will help in wining shared services deals
    Shared Services and Outsourcing in US and European Government (Databook)
    Introduction
    Total IT services revenue in the United States by type of service, 2006 to 2012
    IT services revenue from shared services projects in the United States by type of service, 2006 to 2012
    Total IT services revenue in the United States by sector of government, 2006 to 2012
    IT services revenue from shared services projects in the United States by sector of government, 2006 to 2012
    Total IT services revenue in Europe by region, 2006 to 2012
    IT services revenue from shared services projects in Europe by region, 2006 to 2012
    Total IT services revenue in the United Kingdom by type of service, 2006 to 2012
    IT services revenue from shared services projects in the United Kingdom by type of service, 2006 to 2012
    Total IT services revenue in the United Kingdom by sector of government, 2006 to 2012
    IT services revenue from shared services projects in the United Kingdom by sector of government, 2006 to 2012
    Total IT services revenue in France by type of service, 2006 to 2012
    IT services revenue from shared services projects in France by type of service, 2006 to 2012
    Total IT services revenue in France by sector of government, 2006 to 2012
    IT services revenue from shared services projects in France by sector of government, 2006 to 2012
    Total IT services revenue in Germany by type of service, 2006 to 2012
    IT services revenue from shared services projects in Germany by type of service, 2006 to 2012
    Total IT services revenue in Germany by sector of government, 2006 to 2012
    IT services revenue from shared services projects in Germany by sector of government, 2006 to 2012
    Total IT services revenue in Nordics by type of service, 2006 to 2012
    IT services revenue from shared services projects in Nordics by type of service, 2006 to 2012
    Total IT services revenue in Nordics by sector of government, 2006 to 2012
    IT services revenue from shared services projects in Nordics by sector of government, 2006 to 2012
    Total IT services revenue in Benelux by type of service, 2006 to 2012
    IT services revenue from shared services projects in Benelux by type of service, 2006 to 2012
    Total IT services revenue in Benelux by sector of government, 2006 to 2012
    IT services revenue from shared services projects in Benelux by sector of government, 2006 to 2012
    Total IT services revenue in Italy by type of service, 2006 to 2012
    IT services revenue from shared services projects in Italy by type of service, 2006 to 2012
    Total IT services revenue in Italy by sector of government, 2006 to 2012
    IT services revenue from shared services projects in Italy by sector of government, 2006 to 2012
    Total IT services revenue in Spain by type of service, 2006 to 2012
    IT services revenue from shared services projects in Spain by type of service, 2006 to 2012
    Total IT services revenue in Spain by sector of government, 2006 to 2012
    IT services revenue from shared services projects in Spain by sector of government, 2006 to 2012
    Total IT services revenue in Rest of Western Europe by type of service, 2006 to 2012
    IT services revenue from shared services projects in Rest of Western Europe by type of service, 2006 to 2012
    Total IT services revenue in Rest of Western Europe by sector of government, 2006 to 2012
    IT services revenue from shared services projects in Rest of Western Europe by sector of government, 2006 to 2012
    Total IT services revenue in Eastern Europe by type of service, 2006 to 2012
    IT services revenue from shared services projects in Eastern Europe by type of service, 2006 to 2012
    Total IT services revenue in Eastern Europe by sector of government, 2006 to 2012
    IT services revenue from shared services projects in Eastern Europe by sector of government, 2006 to 2012
    APPENDIX
    Definitions
    Methodology
    Further reading
    Ask the analyst
    Datamonitor consulting
    Disclaimer
    List of Tables
    Table 1: Total IT services revenue in the United States by type of service, 2006 to 2012
    Table 2: IT services revenue from shared services projects in the United States by type of service, 2006 to 2012
    Table 3: Total IT services revenue in the United States by sector of government, 2006 to 2012
    Table 4: IT services revenue from shared services projects in the United States by sector of government, 2006 to 2012
    Table 5: Total IT services revenue in Europe by region, 2006 to 2012
    Table 6: IT services revenue from shared services projects in Europe by region, 2006 to 2012
    Table 7: Total IT services revenue in the United Kingdom by type of service, 2006 to 2012
    Table 8: IT services revenue from shared services projects in the United Kingdom by type of service, 2006 to 2012
    Table 9: Total IT services revenue in the United Kingdom by sector of government, 2006 to 2012
    Table 10: IT services revenue from shared services projects in the United States by sector of government, 2006 to 2012
    Table 11: Total IT services revenue in France by type of service, 2006 to 2012
    Table 12: IT services revenue from shared services projects in France by type of service, 2006 to 2012
    Table 13: Total IT services revenue in France by sector of government, 2006 to 2012
    Table 14: IT services revenue from shared services projects in France by sector of government, 2006 to 2012
    Table 15: Total IT services revenue in Germany by type of service, 2006 to 2012
    Table 16: IT services revenue from shared services projects in Germany by type of service, 2006 to 2012
    Table 17: Total IT services revenue in Germany by sector of government, 2006 to 2012
    Table 18: IT services revenue from shared services projects in Germany by sector of government, 2006 to 2012
    Table 19: Total IT services revenue in Nordics by type of service, 2006 to 2012
    Table 20: IT services revenue from shared services projects in Nordics by type of service, 2006 to 2012
    Table 21: Total IT services revenue in Nordics by sector of government, 2006 to 2012
    Table 22: IT services revenue from shared services projects in Nordics by sector of government, 2006 to 2012
    Table 23: Total IT services revenue in Benelux by type of service, 2006 to 2012
    Table 24: IT services revenue from shared services projects in Benelux by type of service, 2006 to 2012
    Table 25: Total IT services revenue in Benelux by sector of government, 2006 to 2012
    Table 26: IT services revenue from shared services projects in Benelux by sector of government, 2006 to 2012
    Table 27: Total IT services revenue in Italy by type of service, 2006 to 2012
    Table 28: IT services revenue from shared services projects in Italy by type of service, 2006 to 2012
    Table 29: Total IT services revenue in Italy by sector of government, 2006 to 2012
    Table 30: IT services revenue from shared services projects in Italy by sector of government, 2006 to 2012
    Table 31: Total IT services revenue in Spain by type of service, 2006 to 2012
    Table 32: IT services revenue from shared services projects in Spain by type of service, 2006 to 2012
    Table 33: Total IT services revenue in Spain by sector of government, 2006 to 2012
    Table 34: IT services revenue from shared services projects in Spain by sector of government, 2006 to 2012
    Table 35: Total IT services revenue in Rest of Western Europe by type of service, 2006 to 2012
    Table 36: IT services revenue from shared services projects in Rest of Western Europe by type of service, 2006 to 2012
    Table 37: Total IT services revenue in Rest of Western Europe by sector of government, 2006 to 2012
    Table 38: IT services revenue from shared services projects in Rest of Western Europe by sector of government, 2006 to 2012
    Table 39: Total IT services revenue in Eastern Europe by type of service, 2006 to 2012
    Table 40: IT services revenue from shared services projects in Eastern Europe by type of service, 2006 to 2012
    Table 41: Total IT services revenue in Eastern Europe by sector of government, 2006 to 2012
    Table 42: IT services revenue from shared services projects in Eastern Europe by sector of government, 2006 to 2012
    List of Figures
    Figure 1: Five common structures for shared services
    Figure 2: Pressure to do more with less
    Figure 3: Extent to which institutions currently have or use enterprise applications
    Figure 4: Total spending on IT services by the public sector by geography
    Figure 5: Proportion of IT services revenue from shared services projects in 2012
    Figure 6: IT services revenue from shared services projects, by government sub-sector, 2006-2012
    Figure 7: Overlapping factors for a successful shared service
    Figure 8: Types of function and their correspondence with the criteria for success in shared services
    Figure 9: The evolution of shared services over time
    Figure 10: IT services revenue from shared services projects
    Figure 11: Slow creep up the solution stack
    Figure 12: A service orientated architecture
    Figure 13: Total IT services revenue in the United States by type of service, 2006 to 2012
    Figure 14: IT services revenue from shared services projects in the United States by type of service, 2006 to 2012
    Figure 15: Total IT services revenue in the United States by sector of government, 2006 to 2012
    Figure 16: IT services revenue from shared services projects in the United States by sector of government, 2006 to 2012
    Figure 17: Total IT services revenue in Europe by region, 2006 to 2012
    Figure 18: IT services revenue from shared services projects in Europe by region, 2006 to 2012
    Figure 19: Total IT services revenue in the United Kingdom by type of service, 2006 to 2012
    Figure 20: IT services revenue from shared services projects in the United Kingdom by type of service, 2006 to 2012
    Figure 21: Total IT services revenue in the United States by sector of government, 2006 to 2012
    Figure 22: IT services revenue from shared services projects in the United States by sector of government, 2006 to 2012
    Figure 23: Total IT services revenue in France by type of service, 2006 to 2012
    Figure 24: IT services revenue from shared services projects in France by type of service, 2006 to 2012
    Figure 25: Total IT services revenue in France by sector of government, 2006 to 2012
    Figure 26: IT services revenue from shared services projects in France by sector of government, 2006 to 2012
    Figure 27: Total IT services revenue in Germany by type of service, 2006 to 2012
    Figure 28: IT services revenue from shared services projects in Germany by type of service, 2006 to 2012
    Figure 29: Total IT services revenue in Germany by sector of government, 2006 to 2012
    Figure 30: IT services revenue from shared services projects in Germany by sector of government, 2006 to 2012
    Figure 31: Total IT services revenue in Nordics by type of service, 2006 to 2012
    Figure 32: IT services revenue from shared services projects in Nordics by type of service, 2006 to 2012
    Figure 33: Total IT services revenue in Nordics by sector of government, 2006 to 2012
    Figure 34: IT services revenue from shared services projects in Nordics by sector of government, 2006 to 2012
    Figure 35: Total IT services revenue in Benelux by type of service, 2006 to 2012
    Figure 36: IT services revenue from shared services projects in Benelux by type of service, 2006 to 2012
    Figure 37: Total IT services revenue in Benelux by sector of government, 2006 to 2012
    Figure 38: IT services revenue from shared services projects in Benelux by sector of government, 2006 to 2012
    Figure 39: Total IT services revenue in Italy by type of service, 2006 to 2012
    Figure 40: IT services revenue from shared services projects in Italy by type of service, 2006 to 2012
    Figure 41: Total IT services revenue in Italy by sector of government, 2006 to 2012
    Figure 42: IT services revenue from shared services projects in Italy by sector of government, 2006 to 2012
    Figure 43: Total IT services revenue in Spain by type of service, 2006 to 2012
    Figure 44: IT services revenue from shared services projects in Spain by type of service, 2006 to 2012
    Figure 45: Total IT services revenue in Spain by sector of government, 2006 to 2012
    Figure 46: IT services revenue from shared services projects in Spain by sector of government, 2006 to 2012
    Figure 47: Total IT services revenue in Rest of Western Europe by type of service, 2006 to 2012
    Figure 48: IT services revenue from shared services projects in Rest of Western Europe by type of service, 2006 to 2012
    Figure 49: Total IT services revenue in Rest of Western Europe by sector of government, 2006 to 2012
    Figure 50: IT services revenue from shared services projects in Rest of Western Europe by sector of government, 2006 to 2012
    Figure 51: Total IT services revenue in Eastern Europe by type of service, 2006 to 2012
    Figure 52: IT services revenue from shared services projects in Eastern Europe by type of service, 2006 to 2012
    Figure 53: Total IT services revenue in Eastern Europe by sector of government, 2006 to 2012
    Figure 54: IT services revenue from shared services projects in Eastern Europe by sector of government, 2006 to 2012
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