Exploring Municipal Personnel Perspectives on the Viability of Shared Service Centres in South Africa’s Underperforming Municipalities

Abstract

Shared Service Centres (SSCs) are considered efficient for tackling local government issues. Frequently, they are acknowledged for improving the quality, effectiveness, and efficiency of services due to the advantages of cost savings, risk management, cooperation, information sharing, reduction in duplication, enhanced productivity, and greater customer satisfaction. Although South Africa has had a legislative and policy framework (The Municipal Structures Act 117 of 1998) to establish SSCs in local government for over two decades, it has not been fully implemented to create viable and well-functioning SSCs nationally (Republic of South Africa, 1998). This paper examines the perceptions of municipal employees on the feasibility, possible benefits, and difficulties of implementing shared service centres in underperforming municipalities in South Africa. The study seeks to ascertain the employees’ perception of the potential impact of shared service centres on their municipality’s financial viability and service delivery. The data for this study were gathered using online surveys and focus groups, including 132 local government employees selected from 10 local municipalities across South Africa. The findings suggest that most municipal personnel view shared service centres as feasible to attain cost-effectiveness and enhance service provision. However, concerns regarding job losses, power shifts, and local government autonomy arose during implementation. This article argues that effective shared service centres can improve operational efficiency, service delivery, and financial sustainability by leveraging economies of scale. This reduces costs, improves procedures, optimises resource use, shares expertise, and unites efforts to address various municipality challenges. The research recommends robust governance frameworks to manage SSCs efficiently, ensuring accountability, transparency, and fair service delivery.