What we examined (see Focus of the audit)

This audit examined whether Shared Services Canada (SSC) has made progress in implementing key elements of its transformation plan and maintained the operations of existing services. We focused on SSC’s objectives of maintaining or improving IT services, generating savings, and improving IT security, while transforming IT services. We also looked at how Treasury Board of Canada Secretariat assisted and provided governance and leadership on the strategic vision for SSC and how it fits into the government IT landscape.

Why we did this audit

Shared Services Canada began to transform infrastructure and services in 2013 and expects to complete its transformation of government IT shared services in 2020. This audit was an early review into its progress.

What we concluded

We concluded that, for the transformation initiatives that we examined, Shared Services Canada (SSC) has made limited progress in implementing key elements of its transformation plan, and it has challenges in adequately demonstrating that it is able to meet its objectives of maintaining or improving IT services and generating savings. SSC did not establish clear and concrete expectations for how it would deliver services or measure and report on its performance in maintaining original service levels for its 43 partners. SSC rarely established expectations or provided sufficient information to partners to help them comply with government IT security policies, guidelines, and standards. In addition, SSC’s reporting against its transformation plan requires improvements because internal reports were not clear or accurate. Furthermore, although SSC has reported that it is generating savings, it does not have consistent practices in place to demonstrate that government-wide savings are being achieved or to recognize that there are partner costs involved in all transformation projects.

What we found

Implementing shared services

Overall, we found that there were weaknesses in Shared Services Canada’s (SSC’s) implementation of government IT shared services to date, specifically in managing service expectations with its partners and in measuring and tracking progress on transformation initiatives and savings.

SSC did not set clear and concrete expectations with its partners in providing IT infrastructure service to support their services and applications. As a result, it cannot show if and how it is maintaining or improving services since its creation. Reporting to Parliament focused on activities to be undertaken and not performance against targets. As well, SSC provided limited performance information about service levels and security of IT infrastructure to the 43 partners. All of the partners we consulted raised the lack of security reports as a concern because the partners are accountable for the overall security of their programs and services.

We found that SSC has not developed consistent processes to determine costs and to measure progress and savings. Progress on the two transformation initiatives we examined has been limited, and reporting to SSC’s senior management board on this progress, including the generation of savings, is not clear or accurate. While SSC had some elements of a process to allocate funding to initiatives, it did not have a comprehensive strategy to prioritize and fund its maintenance and transformation activities. Furthermore, SSC faces challenges in accurately determining and reporting total savings. We also found that SSC did not account for partner costs as part of the transition to a shared services model. As a result, the overall financial savings to the government as a whole will remain largely unknown.

• Shared Services Canada did not establish clear and concrete expectations for partners for maintaining service levels

  Recommendation. Shared Services Canada should develop an overall service strategy that articulates how it will meet the needs of partners’ legacy infrastructure and transformed services.

  Recommendation. Shared Services Canada should continue to develop a comprehensive service catalogue that includes a complete list of services provided to partners, levels of service offered, and service targets.

  Recommendation. Shared Services Canada should work with its partners to establish agreements that clearly and concretely articulate service expectations, including roles and responsibilities, service targets, and associated reporting commitments.

  Recommendation. Shared Services Canada should measure and report to Parliament and partners on key areas of IT system health performance (such as security, availability, reliability, and capacity) and on partner satisfaction. Where partner service is below target, SSC should put action plans in place to remediate levels.

  Recommendation. The Treasury Board of Canada Secretariat should put into effect a completed IT Strategic Plan for the Government of Canada.

• Shared Services Canada rarely established expectations or provided sufficient information to partners on core elements of security

  Recommendation. In order for partners to comply with government IT security policies, guidelines and standards, Shared Services Canada should establish expectations and provide the necessary information to partners for the IT infrastructure and services that it manages.

• Determining transformation progress has been hampered by weak reporting practices

  Recommendation. Shared Services Canada should reassess the reporting process for its transformation initiatives to

  • ensure that methods for measuring progress are defined and aligned to key benefits established at the outset of the initiative and
  • establish review mechanisms to ensure that information reported to the senior management board on the status of transformation initiatives is clear and accurate.

• Shared Services Canada could not accurately determine whether savings were being generated from IT infrastructure transformation

  Recommendation. In supporting its funding strategy for its ongoing operations and investments, Shared Services Canada should include in its strategy

  • a formal methodology to prioritize and allocate funding for its investments in legacy and transformation initiatives that includes detailed criteria and rationales and
  • a clear process to ensure that it has the available funding to address its funding deficiencies.

  Recommendation. Shared Services Canada should periodically refine its methodologies and practices to enable them to accurately determine and report savings.

Entity Responses to Recommendations

The audited entities agree with our recommendations, and have responded (see List of Recommendations).

Related Information

For more information

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