GAO Reports on Improving the Use of Shared Services
Saving taxpayer money is often achieved with common sense ideas that are used throughout the private sector, like sharing resources and services that are suitable for multiple applications
The Government Accountability Office’s (GAO) February 3, 2026, report described how federal shared services are being used and what can be done to improve their adoption. GAO reported that there are 167 agencies using federal shared services for cybersecurity; 134 for financial management; 112 for grants management; and 165 for human resources. There are 110 agencies using commercial shared services for human resources, eight using those services for financial management, and five using those services for grants management.
According to the report, the Office of Management and Budget (OMB) estimated that using shared services for mission-support services like payroll or travel could “save the government between $1.25 and $7.5 billion of the $25 billion a year spent on those services.” Agencies found that the benefits of shared services include cost savings and operational efficiencies and that the challenges to greater use include issues like outdated legacy information technology systems.
GAO found that the lack of agency leadership commitment to shared services and the absence of data about how well shared services meet agency needs make it difficult to discern cost savings and benefits, as well as inform decision-making on their increased use. GAO’s recommendations to OMB and the General Services Administration include filling executive leadership positions and implementing plans to collect performance information.
Citizens Against Government Waste supports the use of shared services and since January 2018 has been a member of the Shared Services Leadership Coalition (SSLC). On March 5, 2026, SSLC will be hosting a conference on “Driving Government Efficiency: Delivering Measurable Results.” It is intended to be “a call to action in support of a serious and sustainable movement to promote efficiency and modernization across the government.” Speakers include members of Congress, senior administration officials, and private sector experts. The conference should enhance the adoption of shared services as suggested in the GAO report.
