Wednesday 3rd April, 2013

A new Shared Service Centre jointly run by the government and a private sector partner will consolidate back office functions across government, Minister for the Cabinet Office Francis Maude confirmed.

Independent Shared Service Centre 2 (ISSC2), due to launch in 2014 will comprise of a number of existing shared service centres, and will deliver payroll, HR, finance and procurement services to government departments and could deliver savings of up to £600m.

The process to appoint a private sector partner begins this week when the details are published in the Official Journal of the European Union (OJEU).

Minister for the Cabinet Office Francis Maude said: "Sharing services is a key part of the Civil Service Reform Plan – making government more unified, and enabling civil servants to focus on delivering exceptional public services".

"The joint venture for the second Independent Shared Service Centre will help drive down the costs of back office services and offer a competitive proposition for additional customers. Future growth will also deliver even more value for the taxpayer".

Stephen Kelly, Government Chief Operating Officer and Head of the Efficiency and Reform Group said: "Lessons have been learned from previous attempts to consolidate back office functions, and we’ve listened carefully to outside scrutiny".