Shared Services

In reply to Mr MARSHALL (Dunstan—Leader of the Opposition) (23 July 2014). (Estimates Committee B)

The Hon. S.E. CLOSE (Port Adelaide—Minister for Manufacturing and Innovation, Minister for Automotive Transformation, Minister for the Public Sector):

The shared services initiative was announced as part of the 2006-07 budget.

While the scope of services transitioned to shared services has reduced, the original target of $60 million annual savings target has not been reduced.

In 2013-14 the shared services initiative achieved the $60 million savings target and will exceed the target in future years.

In October 2007, government created Shared Services SA and approved the Service Overview and Priorities, which described a range of finance, procurement, ICT and human resource services that could be delivered through a shared services model. It was estimated that 2295 FTE would be in scope.

In July 2008, government approved tranche 1, accounts payable, accounts receivable and payroll, and transitions were completed by early 2009.

In June 2009, government approved tranche 2, general accounting services, financial reporting, taxation accounting financial systems support and other financial services, and transitions were completed by late 2009.

In December 2010, government deferred transition of the tranche 3, human resource administration services.

In December 2011, as part of the 2010-11 Mid-Year Budget Review, the government announced that tranche 4, ICT infrastructure services and user support, would not proceed.

In August 2009 government approved proceeding with the e-Procurement initiative and implementation of Basware for agencies by Shared Services SA. The implementation for all non-Health agencies was completed by February 2011 and implementation for SA Health, in conjunction with the Oracle financial system, is currently in progress.

With the reduced scope only 802 FTE transitioned.