Public Shared Service Centers

A Shared Service Center (SSC) is a semi-autonomous organizational unit that carries out back-office functions – such as IT, finance, or HR – for multiple internal clients. Many public sector organizations adopt SSCs due to budgetary pressures. This book is based on the most comprehensive study about public shared services to date. Gerd Schwarz applies transaction cost theory to understand the theoretical and empirical foundations of public shared services and analyzes SSCs compared to the main alternatives for performing back-office activities, i.e., carrying them out within individual agencies or outsourcing to a private service provider. He details planned and realized cost and quality effects of SSCs, distinguishing between nascent and mature SSCs. The author also provides recommendations regarding the SSC organizational architecture, e.g., the location strategy, governance structure, pricing of services, and whether services should be optional or mandatory for the customers.