'Don't just outsource the problem when you outsource IT'

Local council IT departments' tendency to outsource problematic tech functions means their outsourcing projects are rarely successful, according to a new report.

The report, from consultants Deloitte, reveals that local councils need to change their overall approach to IT rather than hoping outsourcers can step in and solve all their tech problems.

"Building an effective corporate IT capability is not the job of the outsourcer. The outsourcer is being contracted to provide skills and expertise but the local authority still needs to provide vital input from its service areas into defining, training and testing systems," the report said.

"Wise authorities will... use outsourcing as a way of providing aspects of their service in a more cost-effective way, and will not simply outsource a problematic service because it has issues they do not understand," it added.

Don't just outsource the problem, local councils have been told
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Rather than outsourcing all IT to a single supplier, Deloitte advises councils to look at outsourcing "highly commoditised" functions such as desktops, networks and datacentres while still keeping overall strategy within the council's control.

According to the consultants, outsourcing specific functions - such as networks, operating and applications development and maintenance - could save councils between 10 and 15 per cent over the longer term.

Deloitte recommends councils put together an IT board to take strategic decisions on tech and consider inviting an individual from their outsourcing supplier to sit on the board.

The report also advocates that IT departments monitor service levels around outsourcing agreements, manage commercial arrangements and quality assure the supplier's work to make sure council end users are getting the right services. "Suppliers cannot be relied upon to police themselves," the report added.

The full report, Taking Control of IT, is available on Deloitte's website.