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shared corporate services

Sharing is scaring: Can shared corporate services save costs in the public sector?

Arturo Herrera Gutierrez's picture
Photo: Simone D. McCourtie / World Bank

In late June, we sent two of our bravest colleagues, Marta and Marcelo, on a daring mission into the Tundra, close to the Arctic Circle. Even though the temperature was in the mid-80s (mid-20s Celsius), you could feel the glacial breezes. Since our unit focuses on Latin America and the Caribbean, you might wonder what brought them so far north.

The team had arrived in Toronto, Ontario with a mission: to learn more about shared corporate services (SCS) and their potential application to save costs and improve government efficiency in other parts of the world.   

In the late 90s, reeling from a financial crisis, the provincial government of Ontario was faced with a daunting task: to cut a third of its administrative budget in one year. In other words, they had to do more with less. Over the next decade the government managed to save C$43 million in direct costs and C$227 million through efficiency gains. Their secret was an innovative solution borrowed from the private sector.