Shelagh Hohm AIS Director

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Outsourcing Administrative Information Systems
Jumping the Chasm

• Shelagh Hohm AIS Director
• Paul Sorenson Vice Provost Information Technology

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Why is outsourcing so hard?
Theres no debate about it. Outsourcing is
difficult. The failure rate of outsourcing
relationships remains high. Depending on whom you
ask, it can be anywhere from 40 to 70 percent. At
the heart of the problem is the inherent conflict
of interest in any outsourcing arrangement. The
client is seeking to get better service, often at
lower costs, than it would get by doing the work
themselves. The vendor, however, wants to make a
profit. That tension must be managed closely in
order to ensure a successful outcome for both
client and vendor. Lalit Sachdeva from CIO
(www.cio.com)
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Whats with the Chasm?

• Outsourcing
• lowering costs
• cost control
• strategic - redirecting energies and focusing
  competencies
• efficiencies in labor, capital, IT, resources
• contract mngt

• In-House
• control
• unique needs
• retained expertise
• cost effective
• project mngt

Valley of Despair

• Academia
• cultural
• conservative
• not profit motivated

tri0059 Image Zoo Royalty Free Photograph
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Agenda
Agenda

• Production Services
• Governance Structure
• Development Services
• Global Resources
• Lessons Learned
• Q A

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University of Alberta PeopleSoft Environment
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Production Services

• IBM Global Services
• 2nd five year term until June 30, 2010
• Application Management
• Hardware Acquisition and Support
• Help Desk Services
• Change Order Requests
• Security Management
• PeopleSoft patches and fixes
• Performance Tuning
• Database Administration
• Peoplesoft upgrades

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Figure 2.1 Administrative Systems Decision
Making Structure
Provost
Strategic Arm Administrative Systems Owners
Tactical Arm Administrative Systems Providers
Vice Provost IT Vice President FA
AIS
Deans Council
Joint Operations Group
AIS Security Group
AIS Steering Committee Executive
General Faculties Council
Customer
Provider
Central Units
AIS
AIS Steering Committee
Students
Faculties
AIS Direction, Strategy, Priorities
Academic Objectives
NDS Development
IBM Production
n x Development Project Teams
n x Ad Hoc Teams Committees (e.g. Upgrade)
LEGEND
A relationship between groups or individuals that
involves fundamental elements of monitoring and
control
User Working Groups
HR COR Working Group
Student COR Working Group
Finance COR Working Groups
A relationship between groups or individuals that
involves less complex exchanges of information
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Committee Structure

• Production Committee (JOG)
• Development Committees (AISSC Exec)
• Change Order Committees
• Security Committee
• Project Based Steering Committees

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AISSC AISSC Executive

• Development Committees
• Annual Development Planning Process
• Establish priorities for new development
• Act as escalation point for project issues
• Provide broad based input into project decisions

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Development Services

• Preferred development vendors
• Sierra Systems
• IBM Global Services
• Ciber
• Confirmed Annual Development Budget
• New Development Methodology
• Standard RFP template
• Quality Measures
• Standard Reporting
• University Provided Project Steward
• Vendor Project Manager
• IBM manages development environments

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Development Plan
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Global Resources

• University Upgrade to Campus Solutions/Human
  Capital Management 9.0
• Visit to India January 2008
• Contractual considerations
• Ensure responsibilities are clearly identified in
  contract
• Prepare a detailed Privacy Impact Assessment
• Ensure you have a Data Classification plan and
  implement that plan
• Audit requirements SAS70
• Include audit, privacy and legal advisors in
  contract, security policy and decision making

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Global Resources

• Experiences
• Landed resource from India as Team Lead
• Time differences
• Mainly technical resources
• Requirements need to be very clear
• Tasks take longer but quality high and rates are
  better
• Overall experience still being evaluated ...

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Outsourcing Lessons Learned

• Contract Management is critical
• Retain business analysts and ensure staff are
  highly skilled
• University needs to be responsible for vision and
  planning
• Single vendor for new development did not work
• Ensure responsibilities are clearly identified in
  contract
• Do not outsource all responsibility for security
  training
• Project management and change management are key
  to successful development projects
• Hardware, firewall, system administration,
  hardware administration outsourcing are most
  effective

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Backsourcing
Outsource
In-House
Valley of Despair
The key has been running in-house IT like an
outsourcer. "Were a very lean organization
capable of achieving the best value for our
money, Cecilia Claudio took over as CIO of
Anthem Blue Cross and Blue Shield in 1996
www.cio.com
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Questions Answers