Reinventing shared services: A new era of efficiency, agility, and value
Shared services have long been a strategy for local government organizations to achieve cost savings and improve operations. But today, a new wave of innovation and citizen-centric approaches is transforming these collaborations.
As governments face unprecedented challenges—shrinking budgets, increasing service demands, and rapid technological changes—modern shared service initiatives are offering a lifeline.
How are shared services changing, and what are the benefits?
In this blog, we’ll explore how shared services are evolving, the operational and cost benefits they offer, and how Unit4’s flexible solutions empower organizations to adapt to change seamlessly.
The changing focus of shared services
Traditional shared services often centered on internal efficiencies, such as streamlining back-office processes. Today, the focus has shifted toward citizen-centric outcomes and addressing broader organizational challenges. Modern shared service models emphasize:
- Enhanced Citizen Experience: From faster response times to improved service delivery channels, shared services are designed to meet the expectations of a digital-savvy population.
- Collaborative Innovation: Municipalities are pooling resources to address complex challenges, such as cybersecurity and environmental sustainability.
- Agility in Delivery: Local governments can now adapt their service models more quickly, accommodating shifting priorities or emergencies.
South Wales and Gwent Council has leveraged shared services to improve accessibility and citizen engagement. By focusing on collaboration and technology integration, they’ve achieved meaningful outcomes without compromising service quality.
The cost and operational benefits of shared services
Shared services deliver cost savings, but their benefits extend well beyond financial efficiency:
Cost savings
The UK Local Government Association found that shared services save councils over £200m annually, with cumulative savings surpassing £1.3bn across 600 partnerships. These results demonstrate the immense value of scaling operations through collaboration.
Operational efficiencies
- Process standardization: By unifying processes like HR, procurement, and finance, municipalities eliminate redundancies, cut costs, and improve response times.
- Cybersecurity: Collaborations allow smaller councils to implement robust security measures. For instance, the City of Vaasa in Finland improved its cybersecurity readiness by participating in a shared services framework, benefiting from collective expertise and resources.
Employee empowerment
Shared services also transform the work experience for government employees. Leveraging automation and removing repetitive tasks enables staff to focus on strategic, high-value initiatives.
For example, robotic process automation (RPA) has reduced workloads and boosted satisfaction among employees in councils that have adopted these technologies.
How Unit4 enables seamless shared services transformation
Unit4 provides solutions that empower public sector organizations to overcome challenges and unlock the full potential of shared services. Its approach centers on agility, flexibility, and scalability, making it easier for organizations to reconfigure services and respond to changing needs.
Adaptable and scalable
Unit4’s Cloud-based enterprise solutions enable municipalities to adjust the scope of their shared services initiatives without significant disruption. Whether adding new entities or realigning service structures, Unit4 ensures smooth transitions.
For instance, West Northamptonshire Council (WNC) employs Unit4's ERP (Enterprise Resource Planning) system to manage shared services across multiple councils, including Cambridgeshire County, Milton Keynes City, and North Northamptonshire Councils.
The system supports critical functions like HR, payroll, finance, and payments for over 14,000 users and processes payroll for approximately 27,000 individuals monthly.
Acting as the lead authority in this shared-service arrangement, WNC leverages Unit4’s platform to streamline processes, improve cost efficiency, and enhance services for residents and partner organizations.
Click to read 21st-century shared services for the public sector
Driving innovation
With built-in support for automation and AI tools, Unit4’s systems enhance service delivery. By embracing intelligent automation, councils can process citizen requests faster and more accurately, leading to improved public satisfaction.
Shared services also enable significant financial savings. For example, South Wales Police and Gwent Police adopted Unit4’s Cloud-based solutions to enhance HR and finance operations.
This consolidated approach fosters collaboration and saves approximately £4 million annually, aligning with public sector goals to optimize resources and improve decision-making.
Sustainability and collaboration
Unit4 supports the push for ESG (environmental, social, and governance) goals by facilitating resource-sharing and operational efficiency. Shared initiatives like those implemented by Hoople Ltd. demonstrate how adopting Unit4 ERP systems can optimize resources while maintaining service quality.
Hoople has successfully integrated these systems to enhance operational efficiency, avoid redundancy, and support broader digital transformation efforts.
Looking ahead at the future of shared services
The challenges facing local governments require bold, collaborative approaches. Shared services, enabled by robust platforms like Unit4, represent a vital strategy for navigating these complexities.
By focusing on citizen outcomes, cost-efficiency, and employee satisfaction, governments can achieve more with less—while remaining agile in a fast-changing world.
As councils across Northern Europe have shown, success lies in leveraging technology as an enabler, not a barrier. With a platform like Unit4, the potential to reshape public service delivery is limitless, fostering stronger communities and sustainable progress.
How Unit4 can help you benefit from shared services
Shared services are no longer just about cutting costs—they’re about creating resilient, future-ready organizations capable of delivering exceptional public value.
Unit4’s integrated solutions, including ERP, FP&A, and HCM, empower organizations to streamline processes, optimize resources, and foster collaboration across departments.
For a deeper dive into the evolution of shared services and how they’re driving transformation in the public sector, download our eBook: 21st Century Shared Services for the Public Sector.
Packed with insights, real-world examples, and practical guidance, it’s your go-to resource for understanding how shared services can deliver efficiency, agility, and exceptional public value.
Whether you’re looking to enhance operational efficiency, achieve financial transparency, or improve employee and citizen experiences, Unit4 can help you achieve your shared service goals. Talk to sales today to learn how.
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