Step 3: Service Provider Comparison

Compare Internal Services vs. Shared Services Providers

Other Information:

The selection of the best value shared service is guided by, among other criteria, a comparison of internal legacy service costs to those of the potential shared services (see Figure 8) and the performance quality they deliver to end users. In the transition year(s), costs may be higherdue to the support of two services- legacy and shared. However,in the out years, cost savings should accumulate. The resulting cost comparison forms the financial basis of a business case to inform the leadership team on whether or not to proceed with a shared service. Other aspects of the business case include strategic alignment, qualitative value such as cost avoidance, improved management information, quality of service and risk analysis. Ultimately, the shared services that agencies implement to support the execution of their missions are based upon their own unique business model, culture, organizational structure, and risk tolerance. The business case should address what, when, and how to move business capability and its delivery into the shared services environment.

Objective(s):

1

Content