Common services such as human resources and accounting are some of the main sources of duplicative programs and costs facing the government. In an effort to streamline these processes in government, the Obama administration has announced four shared service providers across the federal landscape.
The four providers — the Agriculture Department’s National Finance Center, the Interior Department’s Interior Business Center, the Transportation Department’s Enterprise Services Center and the Treasury Department’s Administrative Resource Center — are all ready to support agencies for financial systems modernization, according to a blog post by the Office of Management and Budget on May 2.
“As agencies migrate to the four providers, the government will achieve economies of scale and standardization,” Beth Cobert, deputy director for management at OMB, and Dick Gregg, fiscal assistant secretary at the Treasury Department, wrote in a blog post. “Using a financial management shared service provider will help agencies reduce the risk of new system implementations, allow for faster and less expensive technological innovation, provide long-term cost savings and meet government-wide requirements and deadlines. “
This latest announcement is part of the implementation process from a March 2013 memorandum by OMB to federal agencies on “Improving financial systems through shared services.”
These providers were chosen by OMB and Treasury after a “comprehensive application process.” Future shared service providers will be considered as the need for more shared services increases and as lessons learned emerge from these initial four providers.