An Overview of Shared Services in the Sector: The Current Drivers Catherine Mahony: Council of Social Service of NSW

The NGO sector has always ‘shared services’. This is not a new concept or practice for us. Staff Staff (Solicitors, psychologists, book keepers ) (Solicitors, psychologists, book keepers ) Premises (Co – location, facilities ) Premises (Co – location, facilities ) Governance Structure/Board (Developing and auspicing new projects) Governance Structure/Board (Developing and auspicing new projects) Resources Resources ( policies, templates, buses) ( policies, templates, buses) Purchasing Purchasing (insurance ‘groupings’) (insurance ‘groupings’) Examples:

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

Pressure from some government funding agencies to achieve economies of scale within NGO programs. Pressure from some government funding agencies to achieve economies of scale within NGO programs. The related perception that government agencies prefer to fund larger organisations, which are seen to be more cost effective. The related perception that government agencies prefer to fund larger organisations, which are seen to be more cost effective. The increasing contract and compliance costs faced by NGOs relative to their funding. The increasing contract and compliance costs faced by NGOs relative to their funding. The skill level required of employees to meet these increasing contract and compliance demands. The skill level required of employees to meet these increasing 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 wider, more coordinated and consistent range of services’ (Cairns et al, 2003, 5). The changing needs of clients and the desire to provide ‘a wider, more coordinated and consistent range of services’ (Cairns et al, 2003, 5). The Context of Shared Services for NGOs – Drivers: The Context of Shared Services for NGOs – Drivers:

Collaborative ethos Collaborative ethos Developmental drive Developmental drive Maximising capacity from few resources Maximising capacity from few resources Adaptive capacity- innovation ( necessity) Adaptive capacity- innovation ( necessity) Other Drivers The NGO Sector- A Natural Laboratory

Functions and benefits : Functions and benefits : Delivering much needed corporate services to NGOs in regional and rural NSW Delivering much needed corporate services to NGOs in regional and rural NSW Facilitating more cost effective services through packaging aggregated regional demand. Facilitating more cost effective services through packaging aggregated regional demand. Generating local employment opportunities. Generating local employment opportunities. Leveraging business support (pro bono and subsidised expertise) and brokering affordable training opportunities to meet identified regional NGO needs. Leveraging business support (pro bono and subsidised expertise) and brokering affordable training opportunities to meet identified regional NGO needs. NCOSS Current ‘Shared Service’ Proposals: Regional Service Hubs To provide specialist corporate services to clusters of NGOs in rural/regional areas (human resources, financial administration, strategic planning)

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 issues Resolving technical issues ICT Health check- ups ICT Health check- ups Applications training Applications training Negotiating support contracts, general ICT strategic advice Negotiating support contracts, general ICT strategic advice A highly customised (NGO friendly) and cost effective shared service model of IT support for clusters of NGOs. A highly customised (NGO friendly) and cost effective shared service model of IT support for clusters of NGOs. Cost savings through bundling of aggregated demand. Increased bargaining power. Cost savings through bundling of aggregated demand. Increased bargaining power. Adopts a community development approach to the provision of ICT servicing and capacity building. Adopts a community development approach to the provision of ICT servicing and capacity building. ICT Circuit Riders – NSW A regionally- based ‘shared service model’ of IT support, maintenance and resourcing for clusters of NGOs.