Survey: Half of public sector CIOs balk at shared services

Public sector CIOs doubt savings, and are reluctant to cede control of IT assets, says research firm

Almost half the public sector CIOS surveyed in a recent study by market researcher Ovum Inc. said they were unconvinced a move to shared services would save them enough money to make the transition worth their while.

The survey found 46 percent of North American public sector CIOs, 49 percent of European CIOs but  only 29 percent of  Asia-Pacific CIOs surveyed found the savings promised via a move to shared services wanting.

“The move to shared services does involve upheaval and invariably means changing software applications, which in turn can require system and data migration and all the complexity that this entails,” according to Jessica Hawkins, the lead analyst on the Ovum study.

Related coverage:

Federal managers may overlook potential savings, survey says

“Many agencies have the perception that there is not enough money to be saved to make this worthwhile.”

However, their reluctance might have more to do with a perceived loss of control by CIOs of their IT assets than in the organizational upheaval that goes with a move to the cloud.

According to the survey over two-thirds, 68 percent, of North American public sector CIOs cited loss of control of their business operations as reason for not making the move to shared services. The figure was 39 percent for European government CIOs and 31 percent for Asia Pacific CIOs0000000.

Hawkins called restructuring an “emotive” issue for CIOs, compounded by an already weak economic picture.

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Reader Comments

Tue, May 31, 2011

Yep, the main issue is turf and span of control. Understandable if the agencies don't have anything in common, but downright stupid in an agency like DoD where each shop just HAS to roll their own system, even though a DoD-wide system for housekeeping functions would save billions.

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