Financial crisis could see lawyers exit as shared services gather speed

Lawyers could lose their jobs as public sector organisations share services and cut support and back office staff in an effort to reduce costs during the financial crisis, research has revealed.

In its latest survey, the Chartered Institute of Public Finance and Accountancy (CIPFA) found that almost half of public bodies (46%) said they would be developing partnerships or actively sharing services next year. Almost three-quarters (70%) forecast ‘very’ or ‘quite significant’ cost savings arising from future shared service arrangements.  By contrast, just 16% said they were planning front-line service cuts.

According to Dr Paul Jackson, CIPFA’s performance improvement adviser, the public sector is increasingly turning to shared services due to financial pressures. “Public organisations are trying to make efficiencies, particularly in the back office,” he told LGL. “Legal services come into that.”

Local authorities (53%) and fire, police and emergency services (57%) are the organisations most expected to enter into shared services arrangements during the coming year. Among local authorities, district councils (69%) are most affected.

Change management and gaining political agreement were seen as the two major challenges in delivering shared services successfully.

CIPFA will publish a guidance report on shared services, Sharing the gain: Collaborating for Cost Effectiveness, on 20 January 2010.