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ITD #11 | 21Oct 2011| Integrating IT to shared services structures

ITD #11 | 21Oct 2011| Integrating IT to shared services structures

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Published by IT Decisions
ITD Research #11 | Integrating IT to shared services structures | English version | Published 21 October 2011
ITD Research #11 | Integrating IT to shared services structures | English version | Published 21 October 2011

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Published by: IT Decisions on Oct 21, 2011
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1ITD #11 ‘Integrating IT to shared services structures’ © IT Decisions 21 October 2011 – All rights reserved
 
Integrating IT to shared services
 
structures
 
ITD Research #11 : 21 October 2011
 
 
 
2ITD #11 ‘Integrating IT to shared services structures’ © IT Decisions 21 October 2011 – All rights reserved
Introduction
To many executives across business functions worldwide,IT is a support function that is a cost ‐ often quite high ‐to their business.But IT is essential for just about any industry, because foralmost any corporate environment the Internet, email,communication systems, and enterprise software such asERP – imagine trying to function without this?However, many companies in Brazil and overseas havecreated a shared service structure for the supportfunctions of the business, like payroll, finance, andhuman resources.IT is usually more strategic and important than thesefunctions, but there are many areas where the lessons of the shared service culture can be applied to IT.Infrastructure is a good example. If various areas of yourbusiness just need storage space then why not arrangethat centrally and share the service across all divisions of the business?While sharing IT may appear logical andmay introduce efficiencies, can thisinternal market in services disruptworkflow and make it harder to deliverefficient and innovative IT services?This week, our CIO research groupshared their thoughts and experienceson IT as a shared service, and the resultsare supportive in general, but with a fewsurprises.
 
Many
 
lessons of theshared service culturecan be applied to IT
 
 
3ITD #11 ‘Integrating IT to shared services structures’ © IT Decisions 21 October 2011 – All rights reserved
Participant feedback
To explore the issue of integrating IT into a shared service function we asked four questions – threeof which were multiple choice and one designed to promote an open discussion.We received answers from 22 executives from 16 industry sectors: shipbuilding, pharmaceuticals,logistics, consumer services, transportation, insurance, broadcasting, consumer goods, media,chemicals, engineering, education, food production, real estate, automotive, and telecoms.
Question 1: Could you (or are you already) achieving an economy of scale by sharing IT servicesacross the organization? 
This was very much a mixed answer and perhaps it depends on the scale of sharing involved. Almosthalf of respondents (45.5%) confirmed that they are using a shared services model to achieveeconomies of scale for IT, but a further 36.4% noted that they are partially working this way.Taken together this is quite a strong vote of confidence in the shared service model working for IT,with 4 out of 5 respondents confirming that they are working partially or entirely within a sharedservices model for IT.
0 1 2 3 4 5 6 7 8 9 10YesNoPartially45.5%18.2%36.4%

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