Critical Read

Study: Shared services could save government $28 billion

computers and globe_data sharing

What: A MeriTalk study called “Shared Serviced: Ready or Not?” The study was underwritten by ServiceNow. MeriTalk conducted in-person surveys with 138 federal IT professionals at a January event, 76 percent from civilian agencies and 24 percent from defense and intelligence agencies; 67 percent of those surveyed held IT roles.

Why: The White House defines shared services as an IT function that is provided for consumption by multiple organizations within or between federal agencies. Nearly 75 percent of respondents said shared services are a strategic initiative for their agency CIOs in the coming year, and 96 percent believe it should be. Just over half of agencies are using shared services, while 44 percent are actually providing services – cloud computing, for example – to other agencies.

Yet the survey suggests current shared services are haphazardly organized. Only about 40 percent of agencies have defined goals and objectives, and only 32 percent have established -level agreements. Even fewer, only 16 percent, have developed a financial model and chargeback system to position their IT systems as a broker of any such services. Culture, security, procurement, cost savings quantification and infrastructure are all viewed as barriers to improved shared services by respondents.

The potential, however, is great. Those surveyed felt shared services could save 34 percent of the total federal IT budget, the equivalent of $27.9 billion.

Verbatim:

  • Feds say agency culture is a more significant hurdle than security.
  • Nearly nine out of 10 Feds believe cloud computing is transforming views of shared services.
  • To enable government-wide shared services, agencies call for senior leadership support (81 percent), SLAs (75 percent), and a governance process for IT services (66 percent). 

About the Author

Frank Konkel is a former staff writer for FCW.

Featured

  • Contracting
    8 prototypes of the border walls as tweeted by CBP San Diego

    DHS contractors face protests – on the streets

    Tech companies are facing protests internally from workers and externally from activists about doing for government amid controversial policies like "zero tolerance" for illegal immigration.

  • Workforce
    By Mark Van Scyoc Royalty-free stock photo ID: 285175268

    At OPM, Weichert pushes direct hire, pay agent changes

    Margaret Weichert, now acting director of the Office of Personnel Management, is clearing agencies to make direct hires in IT, cyber and other tech fields and is changing pay for specialized occupations.

  • Cloud
    Shutterstock ID ID: 222190471 By wk1003mike

    IBM protests JEDI cloud deal

    As the deadline to submit bids on the Pentagon's $10 billion, 10-year warfighter cloud deal draws near, IBM announced a legal protest.

Stay Connected

FCW Update

Sign up for our newsletter.

I agree to this site's Privacy Policy.