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Apr 11, 2008,

Private-sector companies may have taken the lead when it comes to shared services, but that doesn't mean they have fully embraced the concept. In fact, a debate about the merits of shared services versus outsourcing has been simmering for a while.

Supporters of the shared services approach argue that although it's not easy to implement, the benefits are greater because it delivers a better understanding of the services that are shared internally or externally.

But outsourcing advocates argue that by turning the delivery of services over to a third party, there's a greater incentive to reduce costs and generate savings. Service-level agreements between an IT department and its customer don't have the same money-saving enticement.

Surveys of private-sector IT executives show no consensus on which approach is best. However most CIOs agree that executive support is crucial to the success of a shared services delivery model, according to consulting firm Capgemini.



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