Two senior IT leaders have spoken out, separately, against
the large-scale outsourcing of IT, in favour of the greater control
by internal technologists.
One is David Tidey, chairman of the
Elite group
for IT directors and senior managers and assistant chief executive
of the Royal Borough of Kensington and Chelsea. He told an IT
audience that the "outsourcing of everything" was in fashion 10
years ago. But he said it may mean losing the ability to cut costs
at short notice.
He said: "When you go to the supplier and say we have real
problems with our budgets: we want to cut your charge to us by 10%,
they will turn around and say: 'ten-year contract - sorry you
cannot do that'."
Tidey also has his doubts about having a single strategic
partner. He said that such an arrangement can work but in many
cases "you see problems".
He told the Numara Software
"Engage Public Sector Forum" that once an authority has chosen
a strategic partner by open tender it may end up buying systems
which are not necessarily good value for money.
"I cannot go out to the market to check it because you're my
strategic partner and you are my first point of contact. If you can
leverage a really good partner, with a successful business
transformation, that's great but I am slightly suspicious of that
because they are here to make money.
"Let's not beat about the bush. They want to make their 20%
profit on your services. If you go into it with that in mind and
you're not upset by about that then fine. I have a slight problem
with that."
Phil Pavitt, group CIO at Transport for London, has a similar
view. He told a Govnet conference that he is a serial insourcer. He
said: "With respect to anyone who comes from any of these
organisations, I spend most of my time explaining that the big five
consultancies are not the world's IT experts in my space. They all
think they are. I have found that the best IT experience is inside
my own IT team.
"Those who know me know that I am a serial insourcer I run
things cheaper than any outsourcer can."
He said that in-house IT departments should "stand up and sell
ourselves". He added: "We are the experts. We should show our
expertise."
Pavitt's responsibilities include the technology supporting
London's buses, the Underground, the Docklands Light Railway,
Congestion Charge, London River Services, Victoria Coach Station,
the London Transport Museum, and the capital's 4,600 traffic
lights.
Pavitt to speak at GCLive public sector IT conference at Earl's
Court 9-10 June 2009 >>
Don't reject outsourcing >>