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PP42 April 2012

Shared procurement involves risk in UK

16 Nov 2010

Source:  Odgers Berndtson

Public sector departments in the UK who want to cut costs by sharing procurement services have to overcome political and cultural differences, it is claimed.

Dean Shoesmith, president of the Public Sector People Managers' Association, said sharing services between local authorities and bodies is merely one of several options. His comments, reported by People Management magazine, were made to delegates at the Chartered Institute of Personnel and Development (CIPD) annual conference in Manchester.
"Risk-taking, courage and fortitude" are all required to make the transition to shared services, he said.

"Shared services have been heralded as a panacea to solve the [public sector spending] problem," he continued ‘the plan to reduce spending on public services by £81 billion is very challenging, the cuts "can be delivered in a variety of different ways".

His comments follow the news that Leicestershire County Council and Nottingham City Council have signed a partnership deal that will save more than £2 million per year.?The two authorities have agreed to pool administrative functions, including human resources, payroll and finance services.

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