Unit4 Studies: Organizations Adopting Shared Services to Drive Transformation

“PSOs are adapting quickly and they understand that shared services can help to build resilience against market uncertainty, which is critical if they are to remain competitive,” said Mike Ettling, CEO, Unit4. “During the pandemic, PSOs experimented with global delivery models and, for ambitious mid-market firms, this can act as a way to differentiate. To be successful, though, requires streamlined and aligned internal and external business processes. It is clear that the shared services model offers a more effective way to establish the right foundations for global delivery strategies.”

Belgian PSOs (37%) are ahead of the global average, intending to move finance and accounting functions to a shared services model in the next three years, compared to 25% in the Nordics and globally 38% of IT Services firms. The DACH region clearly illustrates the benefits of moving to a shared services model, as 77% of PSOs have already moved their project management teams to this way of working and they outperform their peers in terms of delivering projects on time. This can, in part, be attributed to having a holistic view of all the data within their organizations on project management.

Public Sector

There has been significant growth in the adoption of central and shared services, which has gone from 0% in 2021 to 33% in 2023, according to the State of the Digital Nation study. For those already using central and shared services, growing its footprint has been one of the top three changes that public sector organizations have seen in the last 24 months.

Canadian respondents place the greatest emphasis on it, but it drops out of the top three for UK respondents. In contrast, it is a top three priority for central government and healthcare bodies, but falls just outside for state/local/municipal authorities.

“There is an urgency to look at the shared services model in the public sector, not just because of budget constraints but because it is understood that service providers must collaborate to deliver services effectively to citizens,” Mike Ettling, CEO, Unit4. “Shared services are going through a perception change in that they are no longer just seen as a means of cutting costs, but as a strategic means to resolve fundamental challenges around legacy systems, data compatibility and delivering real-time analytics. The model has the potential to deliver on ambitious transformation goals to make the public sector fit-for-purpose in the 21^st Century.”

In 2023, 29% of respondents say there is a need for wholesale improvement in data compatibility, while 34% say large improvements are needed. Canada has the highest percentage (41%) demanding wholesale change compared to UK (35%) and Sweden (17%). Central government respondents (43%) are most likely to say this issue requires wholesale improvement, compared to state/ local/ municipal bodies (29%) and healthcare providers (16%). Finance decision makers also say that accessing real-time data has become harder (54%), compared to the previous study in 2021 (40%). All these indications underline the importance of having centralized services where public sector bodies can streamline and integrate all sources of data within their organizations to form an accurate picture of priorities and respond with greater agility to optimize performance.

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Methodologies

State of the Digital Nation: examined the progress in digital transformation made by public sector institutions in the UK, Canada, the Netherlands and Sweden since the last research was undertaken in 2021. This latest study interviewed 300 public sector professionals across central and local government, non-governmental bodies and healthcare. The 2021 study interviewed 600 public sector professionals across the same verticals within US, Canada, UK, Belgium, Sweden and Australia.

Pierre Audoin Consultants (PAC) Study: Professional Services - A Benchmark for 2023: The findings of this study are based on a survey of senior business and technology executives at 400 large and medium-sized professional services organizations based in Europe (UK, France, DACH, Benelux, Nordics) and the US. All the participating organizations have between 500 to 5,000 employees and operate across six key subsegments of the professional services industry that are highlighted below. The survey was run in the first quarter of 2023.

About Unit4

Unit4’s next-generation enterprise solutions power many of the world’s most people-centric mid-market organizations. Our state-of-the-art cloud platform, ERPx, brings together the capabilities of Financials, Procurement, Project Management, HR and FP&A onto a unified cloud platform that shares real-time information and is designed with a powerful, people-centric approach, so employees can benefit from better insight and become more effective and increasingly engaged. It supports rapid and continuous change while delivering individualized fit for customers at scale, delivering the right tools to unify the processes across their organization, and connect their people. Unit4 serves more than 6,000 customers globally including, Bravida, Havas, Migros Aare, Americares, Save the Children International, Action against Hunger, Metro Vancouver, Forest Research, Southampton City Council, Habitat for Humanity, Selkirk College, FTI Consulting, and Surrey County Council.

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