More than ever private and public organizations are seeking strategies which would enable them to offer quality products and services to their clients while increasing their effectiveness and efficiency. At CIRANO, a team of researchers defined a framework to analyze strategies which would allow a public organization to integrate and rationalize its administrative support services. Two reorganization strategies were analyzed: shared services and outsourcing. The first approach consists in gathering all the resources required to provide the services within a specialized entity, owned by the organization, whereas the second consists in delegating the services delivery to an external supplier, while transferring all the required resources necessary to provide the services. The report includes three sections. In the first section, the two strategies are defined in order to clarify their main characteristics. Second, key concerns arising when choosing a specific strategy are presented along with their main advantages and disadvantages, their prerequisites, and the specific success factors of each strategy. Finally, a framework based on a list of key criteria is offered as a guide for the identification of the services most likely to be outsourced or offered in a shared services mode.

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