The Bankers Automated Clearing System is critical to the UK's well
being because we all depend on it, argues Colin Beveridge. So is it
wise to even consider outsourcing its IT overseas?
The crown jewels of the national technology infrastructure are not
safely locked up in the Tower of London - they are all in private
hands. And yet, we all depend on their availability to support our
lifestyle and we assume, quite reasonably, that they will always be
there when we need them.
The Bankers Automated Clearing Service (Bacs) is not just another
old tatty gew-gaw among the crown jewels of UK plc - it is the IT
equivalent of the Koh-I-Noor diamond: a priceless gem.
The Bacs service is so pervasive that there can scarcely be an
individual in the whole country that does not benefit from it, in
one way or another, many times each week. As individuals, we use
Bacs to pay our regular bills, to receive our salaries and a dozen
other ways that we may not recognise immediately.
Even those of us without bank accounts are directly, or indirectly,
served by the Bacs network because almost every business and
government function relies on Bacs to keep the cash-flow moving
smoothly through the economic arteries.
I am not overstating the importance of Bacs, therefore, when I
suggest that it is critical to the well being of the country. From
a financial point of view, it is close to being the heart and lungs
of the economy.
Which is why I was so disturbed by recent reports (see link below)
that key aspects of the Bacs service may soon be outsourced to
providers in India in an effort to reduce costs.
I understand that such an arrangement may well have important
commercial benefits to Bacs by reducing overhead costs while the
company transitions its services to new business models.
I probably understand the business case much better than most
people. A couple of years ago, I was part of the Bacs IT senior
management team and responsible for the communications
infrastructure at the heart of Bacs.
That experience gave me tremendous insight into the
economy-critical nature of Bacs and the way in which we all depend
upon it.
Nevertheless, it is not this privileged perspective that makes me
so concerned about the possibility of Bacs using offshore services.
My concerns derive entirely from the apparent ease by which a key
part of the UK infrastructure might be exported and, therefore,
become susceptible to additional geo-political risks.
The prospect of Bacs support and maintenance going abroad -
anywhere outside the UK - certainly worries me tremendously,
especially given the uncertain times in which we live.
This isn't simply an issue about protectionism - it's far more
fundamental than that. Bacs is a key part of our economy and it's
the only game in town - there simply is no alternative. We must do
everything in our powers to preserve its integrity and I cannot see
how that can be secured if any part of it goes offshore.
In real terms Bacs is far more important to the UK than the
Koh-I-Noor diamond, which is zealously protected, so why should we
be happy to see our infrastructure crown jewels treated with any
less regard than a lump of pressurised carbon?
I would very much like to know whether or not the Treasury and the
DTI have been involved in the deliberations about the possibility
of taking Bacs services offshore, or if the decision rests solely
with the Bacs modernisation project team?
Much as I respect my former colleagues, I feel that this burden of
responsibility is not theirs to shoulder alone.
Bacs looks to India as IT overrun drives price hike
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Would outsourcing key
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Colin Beveridgeis an independent
consultant and leading commentator on technology management issues.
He can be contacted atcolin@colin.beveridge.name