How outsourcing can cut your IT costs by 30 per cent and improve efficiency
As new technologies continue to emerge, IT remains a key enabler for the transformation of existing public services and the introduction of new ones.
IT is becoming ever more critical in the way organisations operate and presents new opportunities to accelerate change, improve agility and reduce the level of capital tied up in IT. The adoption and integration of cloud services is one area that is gaining pace in both public and private sectors, creating a new approach toutilising the latest ITdevelopments.
Whether public or private sector, harnessing the potential of IT can be a challenge as IT is unlikely to be the core focus of the organisation. This means that you probably don’t have the scale or technical buying power to get the ‘best in class’ IT all the time. In working with an outsourcing partner you can achieve both, securing best value from vendors, the service quality and you need and a predictable budget. The net result is ‘new’ time to focus on strategic, transformational initiatives that will take your organisation forward, improve efficiency and citizen services. While the public sector locally has adopted shared services and outsourcing in some areas, there are more opportunities for achieving efficiencies. Local Councils in England have for many years enjoyed the benefits of outsourcing many functions including IT. The local structural changes in Northern Ireland could lead to this being a more attractive route to adopting digital citizen services. Capita has worked with Southampton City Council since 2007 and has helped them achieve significant savings on IT costs, improving availability of services and adopting new ways of working. Many of the council’s most in-demand services have been digitised and made available online through its new website.
Among other things, residents can now report potholes, check bin collection dates and pay council tax online, saving the council money, and making access to services available to residents 24/7. Adopting mobile technology has meant that around 500 staff can now work remotely, benefitting areas such as housing repairs where staff can now spend more time with those who need it most.
Outsourcing its IT to Capita has meant Southampton City Council can adopt and adapt to new technologies easily but remain focused on what it does best – delivering high quality services to their residents. Cloud computing is also impacting the outsourcing world. Its flexibility and agility are appealing but fears remain around the security and sovereignty of data. For example, regulated businesses, such as utilities, banks or public sector organisations have to think carefully about data security and data sovereignty. For many, data sovereignty is critical which means it may be unacceptable to have data held offshore.
The role of IT outsourcers is now increasingly about helping clients make the right investment in private, public or hybrid cloud services – and making it all work. This part is often underestimated. Capita have invested significantly in a suite of cloud services that gives the same flexibility, functionality and utility of public cloud, but guarantees data security and UK data sovereignty. That means our customers can be confident that their data only resides in the UK. Capita’s new IT service for schools in Northern Ireland brings together the best of public and cloud services, and is anticipated to achieve around a 30 per cent saving in IT costs. This degree of saving is what Capita would expect on any multi-year outsourced IT engagement.
The overall benefits largely depend on how organisations adopt utility computing but cost savings and service transformation are what makes outsourcing compelling.