Benefits of shared services

Sharing back-of-house services can be an excellent way for organisations to reduce cost and improve service quality, allowing staff to focus more on their core mission and less on administrative and support functions.

By working together NFPs can leverage expertise and scale not otherwise available to them and:

  • œ  reduce the cost of back-of-house services by leveraging economies of scale or gaining access to better systems or processes than were available by working alone
  • œ  make better use of a highly skilled resource (such as a human resources manager or accountant), providing them with greater job satisfaction
  • œ  improve the quality of their back-of-house services so that staff spend less time working with cumbersome administrative and support services
  • œ  reduce organisational risk by having a larger pool of resources in the back-of-house service teams so that there are less issues when staff are not available, and effort to document processes and procedures is spread across a larger group
  • œ  provide assistance to other organisations who might need assistance.

Improved service quality and staff capability

Investment in ICT to enable us to undertake the work has built additional skills and capacity within our organisation.
— Community health organisation
Having a HR professional available to us helped us to develop our business processes, this has been important because we lack HR resources.
— NFP organisation

Improved cost-effectiveness

IT group purchasing enabled us to achieve $1 million in savings in the first year.
— Health provider
We saved approximately $70,000 in the first year of our shared transport project. When this potential saving is multiplied out across the organisation it could be as high as $480,000 per annum.
— Disability provider
Our collaborative working group allowed us to reduce duplication within our HR business services.
— NFP organisation