Shared Services and Software as a Service (SaaS)

September 18, 2017

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• Shared Services– Benefits– Challenges– Recent Trends

• Software as a Service– Benefits– Shared Services and SaaS– Remaining Challenges

Agenda

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Shared Services

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Shared Services

• Shared services refers to organizations sharing infrastructure, software and people to perform common business functions

• U.S. Government Agencies have utilized shared services for decades to support business functions such as:– Financial Management, Procurement, Human Resources, Travel, &

Payroll

• Federal Shared Service Providers (FSSPs) are federal agencies designated by the Office of Management and Budget (OMB) to provide administrative services to other federal agencies.

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• Fewer, more standardized solutions• Improved focus on mission activities and analysis• Reduced enterprise risk• Improvements in data quality and internal control• Costs savings

Benefits of Shared Services

Federal Financial Management FSSPs

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Challenges to Shared Services Adoption

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• The U.S. Federal Government has struggled to gain momentum in the adoption of Shared Services with large Agencies– 1 of 24 CFO Act Agencies have migrated to Financial Management Shared

Services

• OMB has identified the following key priorities to increase the adoption of Shared Services:

– Set Federal-wide data and business capability standards for Financial Management, Grants Management, Procurement, Human Resources, and Information Technology

– Transition the current infrastructure to Software as a Service

Recent Trends

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Software as a Service

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• What is SaaS?– On-Demand software– Securely hosted by vendor over the internet – Subscription-based licensing– Upgrades and maintenance level-costed into licensing fees– Customers are always on the latest version – Customers served through one common, configurable baseline– Configurations, not customizations

• SaaS is not Cloud Hosting

Software as a Service (SaaS)

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Benefits of SaaS

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• ARC strives to deliver continual process and technology improvements that position us to meet the demand of large agencies

• ARC views SaaS as a key enabler to further adoption of Shared Services

• Standardization is the cornerstone of ARCs shared services strategy and lays the foundation for utilizing the SaaS licensing model

• ARC has partnered with Oracle to offer cloud-based hosting & system maintenance activities– Provides the scalability required to meet the demand of large agencies and

Cabinet-level Departments

Shared Services and SaaS

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• ARC’s partnership with Oracle allows us to provide the whole package of systems and services as an integrated service to our customers

Shared Services and SaaS

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• Other Change Management Challenges:– Reaching consensus on government-wide data

and process standards– Agencies aligning to software features “as-is”– Shifting focus to consuming, not maintaining

software

Remaining Challenges

• SaaS will not resolve all of the challenges to increasing Shared Service adoption

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Your Thoughts

• Are Shared Services and Standardization the cornerstones of your administrative services approach?

• What are your key barriers to adoption of Shared Services?

• Has SaaS driven the adoption of Shared Services in your country?

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Contact Information

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Matt MillerAssistant Commissioner, Fiscal Accounting304-480-6681matthew.miller@fiscal.treasury.gov