An Overview of Shared An Overview of Shared

Services in the Sector: Services in the Sector:

The Current DriversThe Current Drivers

Catherine Mahony:Catherine Mahony:Council of Social Service of NSWCouncil of Social Service of NSW

The NGO sector has always ‘shared The NGO sector has always ‘shared services’. services’.

This is not a This is not a newnew concept or practice for concept or practice for us.us.

StaffStaff

(Solicitors, psychologists, book keepers )(Solicitors, psychologists, book keepers ) PremisesPremises

(Co – location, facilities )(Co – location, facilities ) Governance Structure/BoardGovernance Structure/Board

(Developing and auspicing new projects)(Developing and auspicing new projects) ResourcesResources

( policies, templates, buses)( policies, templates, buses) PurchasingPurchasing

(insurance ‘groupings’)(insurance ‘groupings’)

ExampleExamples:s:

““Shared services processes have Shared services processes have often been ad-hoc and the often been ad-hoc and the factors that promote success, factors that promote success, and the systems required for and the systems required for effective implementation of effective implementation of shared service arrangements, shared service arrangements, have not been very well have not been very well documented”.documented”.

Pressure from some government funding agencies to achieve Pressure from some government funding agencies to achieve economies of scale within NGO programs. economies of scale within NGO programs.

The related perception that government agencies prefer to fund The related perception that government agencies prefer to fund larger organisations, which are seen to be more cost effective.larger organisations, which are seen to be more cost effective.

The increasing contract and compliance costs faced by NGOs The increasing contract and compliance costs faced by NGOs relative to their funding. relative to their funding.

The skill level required of employees to meet these increasing The skill level required of employees to meet these increasing contract and compliance demands. contract and compliance demands.

The challenges of recruiting and retaining workers in the sector. The challenges of recruiting and retaining workers in the sector.

The changing needs of clients and the desire to provide ‘a The changing needs of clients and the desire to provide ‘a wider, more coordinated and consistent range of services’ wider, more coordinated and consistent range of services’ (Cairns et al, 2003, 5).(Cairns et al, 2003, 5).

The Context of Shared Services for NGOs – Drivers:The Context of Shared Services for NGOs – Drivers:

Collaborative ethosCollaborative ethos Developmental drive Developmental drive Maximising capacity from few resourcesMaximising capacity from few resources Adaptive capacity- innovation Adaptive capacity- innovation

( necessity)( necessity)

Other DriversOther Drivers

The NGO Sector- A Natural The NGO Sector- A Natural LaboratoryLaboratory

Functions and benefits Functions and benefits ::

Delivering much needed corporate services to NGOs in Delivering much needed corporate services to NGOs in regional and rural NSWregional and rural NSW

Facilitating more cost effective services through Facilitating more cost effective services through packaging aggregated regional demand.packaging aggregated regional demand.

Generating local employment opportunities.Generating local employment opportunities. Leveraging business support (pro bono and subsidised Leveraging business support (pro bono and subsidised

expertise) and brokering affordable training expertise) and brokering affordable training opportunities to meet identified regional NGO needs.opportunities to meet identified regional NGO needs.

NCOSS Current ‘Shared Service’ NCOSS Current ‘Shared Service’ Proposals:Proposals:

Regional Service HubsRegional Service HubsTo provide specialist corporate services to clusters of To provide specialist corporate services to clusters of NGOs in rural/regional areas (human resources, NGOs in rural/regional areas (human resources, financial administration, strategic planning) financial administration, strategic planning)

Functions and Benefits: Functions and Benefits:

The shared ICT Circuit Rider assists clusters of NGOs with: The shared ICT Circuit Rider assists clusters of NGOs with:

• Resolving technical issuesResolving technical issues• ICT Health check- ups ICT Health check- ups • Applications training Applications training • Negotiating support contracts, general ICT strategic adviceNegotiating support contracts, general ICT strategic advice

A highly customised (NGO friendly) and cost effective shared A highly customised (NGO friendly) and cost effective shared service model of IT support for clusters of NGOs.service model of IT support for clusters of NGOs.

Cost savings through bundling of aggregated demand. Increased Cost savings through bundling of aggregated demand. Increased bargaining power. bargaining power.

Adopts a community development approach to the provision of Adopts a community development approach to the provision of ICT servicing and capacity building.ICT servicing and capacity building.

ICT Circuit Riders – NSWICT Circuit Riders – NSW

A regionally- based ‘shared service model’ of IT A regionally- based ‘shared service model’ of IT support, maintenance and resourcing for clusters support, maintenance and resourcing for clusters of NGOs. of NGOs.