Definitions:Centralisation within one institution “Internal Shared Services”Sharing between institutions - which is included within Article 132(1)(f) of Council Directive 2006/112 “Service Sharing” Exemption) enable Universities and other exempt bodies to share services with one another without incurring VAT “in June 2010 HMRC announced it would be launching formal consultation”Out-Sourcing to a third party
KPMG Shared Services in HE Report: UK Examples
Key is to consider the transactional and reporting functionsLook at processes not systems EA
HEFCE / KPMG estimate savings from shared services inn the private sector of 30-50% and 20-30% in the public sector
HEFCE/KPMG – 2006 report:The need for HEIs to maintain their independence (and be seen to be doing so).”
University of Liverpool & Liverpool John Moores University by PA ConsultingSame is true of Bloomsbury GroupThese are large functional areas
2008“engagement is mostly tactical in nature … aimed at meeting particular goals” and that overall “the level of engagement in both FE and HE is low”Focus around resilience and quality – cost savings is 3rd.
Results published July 29th 2010 from 29 respondents. The survey was initiated by Loughborough University.
Beguiling thought….But too complexMust consider this at more granular level to identify those processes which are likely to create savings i.e. that are transactional in nature.Move it from the opportunistic to the strategic
Records life cycle structure study” (Parker, 2002)
So lets look at the registry function
There are also some new National Initiatives that you will be hearing about shortly. Last week I was at a joint HEFCE/JISC meeting which endorsed expenditure of some £20M allocated by the Brown Government on Universities Modernisation. In the near future we will have:Promotion of e-marketplace systems and servicesNational Brokerage Service for Cloud InfrastructureNational Data Duration Centre – building on the pilot for UKRDSSystems and Services Procurement ServiceFirst project will be research management systemElectronic Resource Management Service £600k – cumulative NPV of £4.2M in five yearsArose from a SONUL study into shared servicesSecure Document Management ServiceBuilding on the work of HEAR to provide a qualification verification service.
Shared Services in HE IT Management Chris Cobb Pro Vice-Chancellor Roehampton University
Overview Economies of Scale or Critical Mass Overcoming the Barriers The Devil is in the Detail Four Steps to Shared Services Universities Modernisation Fund
1. Economies of Scale or Critical Mass? UCAS >500,000 undergraduate applications processed per year JANETnetwork connecting UK universities, FE Colleges, Research Councils, Specialist Colleges and Adult and Community Learning providers. Over 18 million end-users. USS – pension fund with 133,000 active members SLC – over 800,000 loan applications for September 2010 RCUK – shared HR, finance, procurement, IT, payroll, grant processing M25 Library group – 59 member institutions Follow the Sun – out of hours ICT Support Internal Audit : Kingston City Group, UNIAC Procurement – Advice and consortia LUPC, SUPC et al SUMS – management consultancy services with 31 members Critical Mass Economy of Scale
University Finance Costs as % of Turnover From a survey of 18 self-selecting universities
2. Perceived Barriers Irrecoverable VAT HE staff costs are now 39% higher than the private sector and 32% higher than the economy as a whole (New JNCHES Pay Framework and Data Research Working group, 2011) Article 132(1)(f) of Council Directive 2006/112 “Service Sharing” Exemption) Don’t outsource a problem Cultural Turkeys and Christmas Devil is in the Detail…
4. Four Steps to Shared Services Disaggregation of systems and processes distinguish the strategic from the transactional Transfer systems and services to cloud based architectures possibly through join procurement Share one architecture in discrete organisations e.g. a finance system with multiple operating entities Share services that support multiple institutions e.g. invoice processing
5. University Modernisation Fund e-marketplace for procurement JANET Brokerage Service for Cloud Infrastructure National Research Data Curation Centre Systems and Services Procurement Service
First project will be research management system
Electronic Resource Management Service Secure Document Management Service