UK HE Shared Services Chris Cobb Pro Vice-Chancellor

1. UK HE Shared Services Chris Cobb Pro Vice-Chancellor

2. Shared Services - Definitions • Centralisation within one institution • Sharing between institutions • Out-Sourcing to a third party

3. Origins/Perspectives: • Gershon Review (2004/5) • Transformational Government Technology (2005) • NHS – XANSA (now Steria) • 150 Healthcare Trusts • 21M patient records • £225M in savings • Austria • HEFCE • KPMG Report • Pilot Studies • …..? • SCONUL – University Librarians • JISC – Joint Information Systems Committee

4. Austrian Model

5. KPMG Shared Services in HE Report: Barriers Barriers: • The additional costs of shared services as a result of irrecoverable VAT. • The need for HEIs to maintain their independence (and be seen to be doing so), when they are in competition with one another. Threat to academic or operational independence, or sharing student services without compromising a competitive advantage

6. KPMG Shared Services in HE Report: UK Examples • UCAS >500,000 undergraduate applications processed per year • JANETnetwork connecting UK universities, FE Colleges, Research Councils, Specialist Colleges and Adult and Community Learning providers. Over 18 million end-users. • USS – pension fund with 133,000 active members • SLC – over 800,000 loan applications for September 2010 • RCUK – shared HR, finance, procurement, IT, payroll, grant processing • M25 Library group – 59 member institutions • Follow the Sun – out of hours ICT Support • Internal Audit : Kingston City Group, UNIAC • Procurement – Advice and consortia LUPC, SUPC et al • SUMS – management consultancy services with 31 members Critical Mass Economy of Scale

7. Ernst Young – Finance Function • Decision Support • Perform planning, budgeting & forecasting • Perform cost management & profitability • Evaluate & manage financial performance • Manage capital • Control • Manage Internal Control • Manage Treasury • Manage Taxes • Reporting • Manage policies and procedures • Perform product and general accounting • Deliver reporting • Transaction Processing • Process accounts payable • Process expense reimbursements • Process payroll • Process revenue accounting

8. HEFCE Feasibility Pilots / Institutional Experiences • Research Data Services • Salford & Derby shared data centre • Bloomsbury Group • Durham • Finish (Helsinki) • Liverpool • Austria

9. University of Liverpool & Liverpool John Moores University by PA Consulting

10. Liverpool Outcomes

11. Standing Committee (SCONUL) • Library Management Systems • Modularisation • SAAS • Resource Discovery standards • Licensing • 92% interest in a shared service undertaking e-Journals licensing • 92% interest in a shared service undertaking e-Books licensing • 84% interest in a shared system for Electronic Resource Management • 77% interest in a shared service undertaking ERM

12. Joint Information Systems Committee (JISC) • Duke and Jordon Report • Flexible Service Delivery Programme • Enterprise Architecture • Service Orientated Architecture • System Modularisation • Cloud Computing

13. Duke & Jordon: Systems Source: JISC Shared Services Study Report 2. “Software currently in use for administrative systems in UK FE & HE. Undertaken by Duke & Jordon April 2008

14. Duke & Jordon: Principal Drivers for ICT Shared Services

15. JISC Flexible Service Delivery Programme (FSD) • Hybrid cloud solution for research repository services • Regional University collaboration with local council for shared ICT service • Use of EA: • centralised timetabling for space efficiency and carbon reduction • smart card access control • integrated learning environments • Product modularisation utilising cloud deployed systems and SOA • Secure electronic document delivery e.g. degree certificates • GRID enabled HPC • Cloud based Enterprise Service Bus • Research Management

16. Current Situation • Reluctance dissipating with burning platform of fiscal crisis, cut-backs • VAT – despite increase it is unavoidable and staff costs are increasing (pay & pensions) • New Gov’t push for efficiency, driven by fat cat perception - £20M stimulus • Shared Data Centres • E-Procurement • FSD Funding

17. “One of the great ironies for those of us in higher education ICT is that, in the coming years, doing the best possible job for our institutions will mean finding the optimal ways to replace our functions with outside services. In other words, a critical part of our job will be to outsource ourselves as effectively as possible”. “Painting the Clouds”, Educause Review, vol 43, no. 6 (Nov/Dec 2008) Colin Currie, Director of Administrative Information Services, Princeton University