Report slams council outsourcing

Local govt faces criticism

The practice of outsourcing local government IT departments faced criticism after a study by the Society of IT Managers (Socitm) found levels of user satisfaction were lower at councils that had outsourced IT functions than those that had kept them in-house.

Socitm's Insight report surveyed 22,000 users about their IT experience and found satisfaction levels were 13 percent lower in 10 councils that had largely outsourced IT than in 75 other councils with internal IT departments.

Socitm said that the survey highlights the risks of outsourcing. It added that councils considering outsourcing should set down clear objectives and ensure they have good communication channels with service providers.

The report also surveyed two councils before and after they outsourced IT departments and found satisfaction levels plummeted by 27 percent at one council and 32 percent at the other during the period. Users at councils that had outsourced typically claimed working relations with IT departments had deteriorated, it was harder to reach support teams, and it took longer for IT problems to be solved.

Mike Davis of analyst firm Butler Group said the requirement for outsourcers to make a profit could contribute to a deterioration in service. "How can an outsourcer provide the same level of service at a lower cost when it also wants to make a profit?" he asked.

Davis added that councils aiming to reduce IT costs should develop shared-service centres such as that currently used by Chester and Crewe councils. "It offers the economies of scale you get from outsourcers, but allows councils to keep control of staff who retain a public-sector ethos," he said.

But Nick Kalisperas of IT trade group Intellect said dissatisfaction with outsourcing was partly due to unrealistic expectations, and councils over-estimated the improvement in service that could be delivered. He added that if councils are unhappy with their outsourcing provider, they should renegotiate the contract terms rather than bring activities back in-house.

Meanwhile, IT staff at Bradford council are threatening to strike over potential job losses resulting from an outsourcing deal. Workers were assured there would be no job cuts when service providers IBM and ITNet were selected as preferred bidders for the Bradford project. However, following ITNet's acquisition by Serco, trade union Unison is claiming that a third of IT staff could be made redundant. It is now balloting its members over proposed strike action.