Is the Government of Canada's Shared Services Strategy a Threat to Small Business (Survey Result 1)

Patrick, Director, Worldwide Strategic Alliances, Atlanta, U.S.

Yes, there will be one or several companies that can handle an entity with the needs as broad and diverse as the entire government, but, no, they won't be able to provide everything. Shared services will still need the types of services an SMB vendor can provide, even if in a sub-arrangement. It will undoubtedly reduce the number of decision points in an effort to reduce costs and implementation times, but may help an SMB vendor's focus and sharpen their value proposition into a longer-term relationship with less effort over time.

My Response:

To be clear about your answer, are you saying that while the new strategy does indeed pose a threat to the SME community in general terms, for those SMEs that do carry through the transition, it will ultimately be to their betterment? In essence it will make them a leaner more forcused organization?

Regarding sub-arrangements (or sub-contracting), what are your thoughts in terms of viability relative to factors such as innovation, best value (including price), and cluster development?

Patrick's Closing Comment:

If this happens, there will be less SMEs to go around. If you look at the motivations behind what the govt is trying to do, part of the cost savings is in points of communication/failure, etc. That said, any SME with something different to offer, high value prop - will still be attractive and irreplaceable. Low cost is another area of differentiation but not always the best spot for a company that's developed something unique or has special relationships. Would start working with any potential front-runners or winners now so they know you and can reserve a spot for you (and most importantly, save room in their submission budgets to give you full value for your solutions). Teaming up can many times make individual weaknesses go away. Just when you think it's the end, it could be the beginning...



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