As outlined in the report dated 27^th January 2009 (available on blackboard), Caerphilly County Borough Council are considering outsourcing their HR (human resource), payroll and training services. This would be done in conjunction with ten other County Borough Councils (local authorities). This move will clearly have consequences for existing employees and other council stakeholders.

Your task

1. Explain why Caerphilly are considering this model of service provision
2. Examine the costs and benefits of joining the shared service model. Your answer should consider the likely consequences of joining for employee relations and management control in the organisation.
3. It has already been decided, by the Council, that the shared service model will not go ahead. Provide an analysis of why you think this decision has been taken. In addition, provide a reasoned argument for an alternative approach given 'the significant reputational risk' of not going ahead.

Remember that there is no 'wrong' answer here but you MUST support your decision with evidence.

Your answer should be supported by reference to relevant and appropriate literature. You should use the Harvard referencing system and use this correctly throughout.