Using shared services for functions such as IT could save governments worldwide as much as $3.3 trillion (1.62 trillion) over ten years, according to a report by AT Kearney.
The research, sponsored by Cisco, showed that when government bodies pool their information, finance and human resources technology resources in shared services systems, it improves the flow of information and cuts costs.
"It is clear that technology is both a crucial enabler of and major target for shared services initiatives," said Yvon Le Roux, vice president, public sector for Cisco in Europe.
The potential savings are higher than previously thought, although government organisations will have to work to earn their share of the potential windfall, the study found.
"We have now found that although cost reduction remains the most significant factor leading government organisations to combine and share back- and front-office functions, improving services to citizens is becoming increasingly important, with Canada taking a lead in many facets of transformation," said Morton.
But many governments aren't effectively matching technology with what customers want, the study found. "For example, half the organisations surveyed are investing in automated telephone systems even though research shows only six per cent of citizens would use it," said Le Roux.
