Feeds

Bleak outlook for IT outsourcing

Poor communication means gov.IT projects 'doomed'

High performance access to file storage

Most government organisation's IT outsourcing (ITO) projects are "doomed before they begin", according to new research.

Government organisations and suppliers are not aligned when it comes to interpreting and agreeing IT outsourcing objectives, says PA Consulting Group's 2005/06 Understanding Misunderstanding survey, released today.

It says lack of planning and poor business cases leads to future problems, and that insufficient attention is given to planning and due diligence.

ITO does not get the "respect it deserves. It is genuine misunderstanding which puts parties at loggerheads from the outset", the survey says.

Richard Harrison, a member of PA Consulting management board, told Government Computing News: "Although government bodies are getting better they are not able to express their requirements leading to suppliers misunderstanding, despite 30 years practice."

All government respondents surveyed said their ultimate goal in using ITO to deliver business transformation was service improvement rather than cost reduction. But when suppliers were asked what their clients wanted most, 100 per cent said government bodies were after cost reduction.

"This suggests a breakdown in the negotiation process and ongoing management," the report says. "This is backed by the fact that 71 per cent said with hindsight they would increase the importance of service innovation when selecting their supplier."

Seventy nine per cent of clients, private and public, put greater importance on access to skills compared to 14 per cent of suppliers. Only 21 per cent of suppliers and 38 per cent of lawyers thought their clients articulated their objectives clearly to the supplier marketplace.

PA head of IT sourcing Fons Kuijpers said: "There is no excuse for IT outsouring deals to go wrong in a mature market. Yet even now, many IT outsourcing deals are doomed before they start because of poor business cases where key items such as costs for the retained organisation have been omitted.

"Equally worrying, suppliers and clients have different expectations of the desired outcome. This is largely due to the client's inability to articulate clearly what they seek to achieve from the deal, and partly due to suppliers pursuing their own agenda."

PA surveyed over 300 international IT chiefs in Europe, Asia-Pacific and North America, along with major global IT outsourcing suppliers and legal advisors. The majority of government bodies surveyed were in the UK.

This article was originally published at Kablenet.

Kablenet's GC weekly is a free email newsletter covering the latest news and analysis of public sector technology. To register click here.

High performance access to file storage

More from The Register

next story
Android engineer: We DIDN'T copy Apple OR follow Samsung's orders
Veep testifies for Samsung during Apple patent trial
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
One year on: diplomatic fail as Chinese APT gangs get back to work
Mandiant says past 12 months shows Beijing won't call off its hackers
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
EFF: Feds plan to put 52 MILLION FACES into recognition database
System would identify faces as part of biometrics collection
Big Content goes after Kim Dotcom
Six studios sling sueballs at dead download destination
Alphadex fires back at British Gas with overcharging allegation
Brit colo outfit says it paid for 347KVA, has been charged for 1940KVA
Jack the RIPA: Blighty cops ignore law, retain innocents' comms data
Prime minister: Nothing to see here, go about your business
Singapore decides 'three strikes' laws are too intrusive
When even a prurient island nation thinks an idea is dodgy it has problems
Banks slap Olympus with £160 MEEELLION lawsuit
Scandal hit camera maker just can't shake off its past
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.