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April 22, 2011 By News Staff
North Carolina could save $57.6 million in IT costs through consolidation and outsourcing over a five-year period, according to an assessment released by state CIO Jerry Fralick, on Wednesday, April 20.
Conducted by Technology Partners International (TPI), a global sourcing advisory firm, the report identified four key areas that would result in considerable savings. They are:
TPI estimated the costs for implementing the changes would run approximately $18.5 million. A team of agency information officers and other state personnel will evaluate the assessment and make further recommendations to Fralick on how to proceed.
“Ultimately we are seeking a reasonable, balanced and achievable approach that will generate real savings while minimizing risks to the vital services provided to our citizens,” Fralick said in a statement.
The TPI assessment was ordered by North Carolina Gov. Bev Perdue last year, as a part of the state’s ongoing streamlining efforts.
A copy of the TPI report is available on the North Carolina Office of the Chief Information Officer website.
You may use or reference this story with attribution and a link to
http://www.govtech.com/budget-finance/North-Carolina-Could-Save-Millions-in-IT-Costs.html
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Yes, lets keep outsourcing jobs until the only jobs left are at McDonald's and Walmart. I realize as government, you need to reduce spending. However, shipping the services to offshore or hiring Visa holding nonAmericans does not help the overall state of America. Don't tell me we don't have the skills. It's a lie and anyone in IT knows it. Look at companies like HP and IBM and Deloitte. Look who they have working for them. Look at who they are laying off. You don't need to be a rocket scientist to see this. I just hope the CEO's of these organizations are ready to deal with the consequeneces long term. You sold out the American way of life while you raked in billions. History will repeat itself. You better be ready.
I completely agree. Not to mention, how does an outsider understand the inside workings of government? They don't. I have seen multiple outsourced projects fail and have to start over from scratch. As for the consolidation - in the long run it may be a better solution but it is frustrating and very hard on the employees involved. It takes years for a consolidation to see the benefits. Benefits of which I have yet to see anywhere...
First, get your facts straight. Outsource and Offshore are not the same. Onshore outsourcing can have benefits (if done well) for the outsourced staff, with the exception of the less competent, who usually end up out the door. When you're outsourced, you become an asset, not an expense. You'll likely see (over time) higher pay and better benefits than you'd have with the state, as the outsourcing company won't pay to keep deadwood, and will spend for talent. With a quality outsourcer, you'll actually see training budgets, and opportunities for career development and advancement - and hard work. Been there, done that.
Your forgetting all the state jobs that would be lost with outsourcing, adding to the already high state unemployment rate of 8%. Not all jobs are transferred to the new outsourced vendor. Outsourcing is a gamble and temporary solution to try and save money during a bad economy and not to mention all the problems that come with its transition. If legislators had the foresight to understand eventually state budgets and the economy will improve (as history has shown) and outsourcing is not the answer its made out to be and plus state government jobs will have been saved to serve the citizens of NC.