Shared services programme: phase 1 programme closure report
This report captures the experience of delivery, and the outcomes and learning that can be derived for the benefit of future transformations in the Scottish Government and the public sector. It covers objectives, post-implementation, governance, costs, benefits realisation, and future work.
7.0 Cost of delivery
The estimated cost profile for Phase 1 of the Shared Services Programme was:
| Date of business case / Accountable Officer (AO) template | Reason for cost articulation | Cost range in AO template (incl VAT) | Cost range in AO template (excl VAT) | VAT element |
|---|---|---|---|---|
| April 2022 | Original | £22.4 to £26m | £18.4 to £22m | £4m |
| Sept 2023 | Rebaselined | £46 to £52m | £40.6 to £46.6m | £5.4m |
| March 2024 | Delay from April to October 2024 | £63 to £66m | £55.4 to £58.4m | £7.6m |
Summary
- The Shared Service Programme began in 2020
- Building on work to identify risks across a number of corporate systems in 2019
- Part of the HR Transformation Programme
- Outline Business Case was approved in April 2021
- The Original Business Case was approved in April 2022
- Refresh and AO Template delaying change to April 2024 was approved by Deputy First Minister in September 2023
- Refreshed March 2024
Costs
1. SSP originally was estimated at £26m with contingency of £3.6m, inclusive of VAT across FYs 2022 to 2024, as per a business case dated April 2022. Net of VAT circa £22m.
2. SSP was recast, rebaselined etc and resulted in a cost range of £46m to £52 inclusive of VAT across FYs 2022 to 2025 as per a refreshed business case dated July 2023. Net of VAT the range was £40.6 to £46.6m. This was conditionally signed off by DFM in September 2023.
The fundamental rationale for the programme, as defined in the original Business Case, remained constant. The key changes are the change in timeframe from the end of summer 2023 to spring 2024.
The costs in the range of £46-52m were presented inclusive of VAT given we did not know at that time the position on VAT recovery.
These figures also included a contingency of £6m
A retrospective Accountable Officer Template was also drafted to support the refreshed Business Case.
3. SSP go live was delayed from April to October 2024 and resulted in a recalculated cost range across FYs 2022 to 2025 of £55.4m to £58.4m, net of VAT as per an addendum to the refreshed business case.
These figures are net of VAT as we now know the value of VAT we can recover. There is no contingency included into the new estimated delivery range given the programme is now at an advanced stage.
A submission to Deputy First Minister on 20 March 2024 providing an update on the implementation of that the Oracle Cloud platform will go live would be delayed until early October 2024.
An Addendum to the refreshed Business Case was provided in addition to a reworked Accountable Officer Template. This shortened process was agreed with SG Finance. The addendum contained details of how that additional time period is being used to maximum effect to ensure the safe implementation of the new platform.
4. As at 31 March 2025, the final cost of implementing the Oracle Cloud platform was £59.5m (following VAT recovery of £8m).
| Phase / cost driver | Cost | Notes |
|---|---|---|
| Delivery of agreed scope, hypercare and extended support up to end of March 2025 | £59.5m | EPM was formally descoped by the Programme Board |
| EPM project | £4.5m | EPM phases 1 & 2 were released in 2025. The system is LIVE. In 2026 we will deliver 2 or 3 more releases to add functionality. EPM will continue to evolve (as is normal for this product and service) thereafter. |
| Total cost of delivery | £64m | To deliver Phase 1 and remaining EPM work. |
| ‘Run’ costs, that are separate to programme delivery costs. |
Software subscriptions as per contract The cost of managing quarterly upgrades The cost of deploying continuous improvement, process changes, business change and further enhancements. The cost of resolving defects, uncovered or inherited via upgrade patches. |
In 2025, our first year post go-live, these costs were higher in totality than we might expect in future years as we optimise the solutions and settle into a rhythm of quarterly upgrades The deployment of improvements and patches are optional, and choices are made based on operational need, the merits of the improvement, affordability and capacity. Costs not disclosed here as they are distinct from the cost of delivery |
Contact
Email: corphub.servicemgt@gov.scot