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IT outsourcing in the public sector local government: experiences of the management and selection of IT service providers

机译:公共部门地方政府的IT外包:管理和选择IT服务提供商的经验

摘要

This paper looks at issues in Information Technology (IT) outsourcing in public sector local government in the UK, to determine how successful they have been and to establish any best practice. This is important because, whilst outsourcing has become a significant issue in the restructuring of organisations and is increasingly used within both the private and public sectors, there has been a lack of research into IT outsourcing in the public sector and particularly within local government. This paper provides an in-depth study into how outsourcing is managed in local councils and how successful it has been; especially considering its sometimes controversial nature and the mixed press results it receives. This paper focuses in particular on an analysis of the risks of IT outsourcing and the management of the outsourcing contract. The research shows that a thorough risk assessment must be completed before an outsourcing contract is agreed. Local government tends to adopt a very cautious approach to outsourcing based on risk minimisation. Hidden costs are one of the greatest risks when outsourcing. Hidden costs occur in selection, managing the contract, and making changes to the contract, all of which can offset any cost savings identified at the start of the outsourcing contract. The research shows that local councils recognise the importance of the contract and that it has the largest single impact on the success or failure of the outsourcing agreement. Having a well written contract is necessary to minimise the risks posed by outsourcing. However, the local government bodies recognised that it is impossible to cover every detail in the contract, particularly where needs are fluctuating, and that an element of trust is required to manage the contract successfully. The research suggests that contracts need to be strict enough to motivate the provider but should be realistic and achievable so that they do not inhibit the development of a working relationship. The paper also addresses issues in the selection of outsourcing providers and more recent developments since the new UK government’s austerity programme The study concludes that, whilst councils recognise that both the contract and trust are important to ensure that outsourcing is successful, the culture of risk aversion in the public sector tends to lead to a ‘play it safe’ mentality resulting in an overemphasis on the contract. This can lead to a short-term focus that could make it difficult for the council and the provider to work together to meet long-term goals. The councils were generally skeptical of developing partnerships; however, the research reveals that councils who focused predominantly on the contract were less successful than those who developed partnerships with their providers. The authors therefore recommend that, in order to achieve greater success, councils should develop partnerships and focus on best value and long-term strategic goals when outsourcing IT.
机译:本文着眼于英国公共部门地方政府中信息技术(IT)外包中的问题,以确定它们取得了多大的成功并建立了最佳实践。这很重要,因为尽管外包已成为组织结构调整中的重要问题,并且在私营和公共部门中越来越多地使用外包,但在公共部门,特别是在地方政府内部,对IT外包的研究却缺乏研究。本文对地方议会如何管理外包以及外包的成功进行了深入研究。特别是考虑到其有时引起争议的性质以及它所收到的混合新闻结果。本文特别关注于IT外包风险和外包合同管理的分析。研究表明,在达成外包合同之前必须完成全面的风险评估。地方政府倾向于在风险最小化的基础上采取非常谨慎的方式进行外包。隐藏成本是外包时的最大风险之一。隐性成本发生在选择,管理合同和更改合同中,所有这些都可以抵消外包合同开始时确定的任何成本节省。研究表明,地方议会认识到合同的重要性,并且它对外包协议成败的影响最大。为了使外包带来的风险最小化,必须有一份良好的合同。但是,地方政府机构认识到不可能涵盖合同中的每个细节,尤其是在需求波动的情况下,成功地管理合同需要信任的要素。研究表明,合同必须足够严格以激励提供者,但合同必须现实可行,以免妨碍工作关系的发展。本文还讨论了自英国新政府紧缩计划以来选择外包提供商的问题和最近的发展。研究得出的结论是,尽管理事会认识到合同和信任对于确保外包成功至关重要,但风险规避文化公共部门的人倾向于产生“安全玩弄”的心态,导致过分强调合同。这可能导致短期关注,这可能使理事会和提供者难以共同实现长期目标。理事会通常对建立伙伴关系持怀疑态度。但是,研究表明,主要关注合同的理事会要比那些与其提供者建立了合作伙伴关系的理事会没有那么成功。因此,作者建议,为了取得更大的成功,理事会应该在建立IT外包时发展伙伴关系,并专注于最佳价值和长期战略目标。

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