Shared services business case for $60m in savings across the VPS

The Victorian Government committed to save $60m in costs over four years from the implementation of a shared services model in a range of corporate functions including human resources, payroll, ICT, finance and fleet management.

To assist the Government achieve its objective, Nous was engaged to lead a comprehensive benchmarking study involving 14 departments and agencies to assess performance and prioritise opportunities for cost savings. Data was collected from participating departments and analysed against comparable Australian and international benchmarks. Using the results of the study, Nous developed recommendations for shared services initiatives, the mix of departments and agencies to be included, the specific services, approximate cost savings, timelines and key risks.

Nous' report was central to the successful bid for implementation funding from the Expenditure Review Committee of Cabinet, and the transition to a new whole-of-government shared services arrangement has commenced.