ADVANTAGES OF Shared services

ADVANTAGES OF Shared services

Increased efficiency, economy and services

Achieving economies of scale: Such economies occur when an increase in the organization’s scale results in a decrease in the long-run average cost of each unit of service. When the city and county of Napa, Calif., consolidated their 911 centers in the 1970s, the cost per dispatched call dropped almost 40 percent.

Achieving higher and more uniform service levels and reducing duplication: Developing intergovernmental agreements presents the opportunity to increase performance accountability.

Optimizing less frequently used facilities, equipment and services: Specialized services, such as canine units or hazardous materials response teams are frequently shared due to their expense and the relative infrequency of their use.

Producing operational improvements by increasing flexibility and stability: In Versailles, Ky., a countywide police merger eliminated duplication of administrative services and improved resource deployment.

Serving as a catalyst for further cooperation: The relatively simple cooperation required to share equipment can establish the trust necessary for more complex arrangements.

Saving money: Jurisdictions can produce less-expensive and more-efficient local services, but these savings are often not realized until three to five years into the agreement.

Enabling large-scale projects that necessitate resource pooling: A government-owned convention center or broadband or wireless network are examples of large-scale projects that might only be possible through joint action and the pooling of resources.

Source: Government Finance Officers Association