Outsourcing ILS


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Outsourcing ILS

  1. 1. Outsourcing Library Systems Digital Libraries à la Carte 2009 Tilburg University July 28, 2009 Annu Jauhiainen The National Library of Finland [email_address]
  2. 2. Contents <ul><li>The Library Network of Finland; The role of the National Library </li></ul><ul><li>Outsourcing </li></ul><ul><ul><li>Process </li></ul></ul><ul><ul><li>Reasons </li></ul></ul><ul><ul><li>Risks </li></ul></ul><ul><li>Finnish Experiences of Outsourcing </li></ul><ul><ul><li>Hardware </li></ul></ul><ul><ul><li>ILS system administration </li></ul></ul><ul><ul><li>Plans for ILL </li></ul></ul><ul><li>To Outsource or Not to Outsource? </li></ul>
  3. 3. The Library Network in Finland <ul><li>The network consists of 4 library sectors </li></ul><ul><ul><li>Universities, polytechnic colleges, public libraries, special libraries </li></ul></ul><ul><li>Each sector has organized its own activities </li></ul><ul><ul><li>Council + working committee structure </li></ul></ul><ul><ul><li>Chair person and secretary </li></ul></ul><ul><ul><li>Sector chairs have meetings together </li></ul></ul><ul><li>3 library consortia in the country </li></ul><ul><ul><li>Linnea2 – library system for universities </li></ul></ul><ul><ul><li>FinELib – national licensing and national IR portal </li></ul></ul><ul><ul><li>AMKIT – polytechnic libraries consortium: library system issues, FinELib issues, etc. </li></ul></ul><ul><ul><li>Joint ILS consortium of university and polytechnic libraries (= Linnea2 + AMKIT) to start in 2010 </li></ul></ul>
  4. 4. The National Library of Finland <ul><li>The National Library functions as a service and development centre for Finnish libraries with a duty to promote both national and international co-operation. </li></ul><ul><li>Services for the libraries </li></ul><ul><li>It is also responsible for acquiring and preserving the national heritage in form of publications as well as maintaining its collections of research material and for providing access to them. </li></ul><ul><li>Services for the nation </li></ul><ul><li>The dual role of the National Library: serving Helsinki University and serving four library sectors </li></ul><ul><li>=> Services for Helsinki University </li></ul>
  5. 5. Services for the Libraries <ul><li>Access to high quality information </li></ul><ul><ul><li>National licensing – FinELib </li></ul></ul><ul><ul><li>National databases – National Bibliography, Union Catalogue, etc. </li></ul></ul><ul><li>Development of the digital working environment </li></ul><ul><ul><li>Library system – Voyager, Aleph </li></ul></ul><ul><ul><li>Portal – MetaLib, SFX, MetaIndex </li></ul></ul><ul><ul><li>Digital Object management system – DSpace, DigiTool </li></ul></ul><ul><li>Impact assessment </li></ul><ul><ul><li>Quantitative – library statistics for universities and polytechnics </li></ul></ul><ul><ul><li>Qualitative – surveys for both libraries as users, and for end-users at libraries </li></ul></ul><ul><ul><li>Development of indicators </li></ul></ul>
  6. 6. Administrative structure of the Finnish library network THE MINISTRY OF EDUCATION Minister of Culture and Sport Minister of Education and Science Public libraries Universities and polytechnics & their libraries, National Library, National Repository Library Municipalities
  7. 7. Planning Process of the National Library <ul><li>3-year planning period – framework for activities; to be changed to a 4 year period </li></ul><ul><li>Decision makers – the Ministry; the University; the Library </li></ul><ul><li>The process </li></ul><ul><ul><li>National Library negotiates with the Ministry of Education – preliminary negotiations concerning national tasks (80% of the funding) </li></ul></ul><ul><ul><ul><li>Library sectors present at negotiations </li></ul></ul></ul><ul><ul><li>Helsinki University runs the budget negotiations </li></ul></ul><ul><ul><li>The library negotiates with the University – special services for the university ( 20%) </li></ul></ul>
  8. 8. Labor Division at National Level <ul><li>CSC - IT Centre for Science </li></ul><ul><ul><li>FUNET – Finnish Academic network </li></ul></ul><ul><ul><li>User authentication (Shibboleth) </li></ul></ul><ul><ul><li>Servers, supercomputing </li></ul></ul><ul><li>National Library </li></ul><ul><ul><li>Services for the libraries (infrastructure) </li></ul></ul><ul><ul><ul><li>Library system, portal, repositories, statistics db etc. </li></ul></ul></ul><ul><ul><li>Services for the nation </li></ul></ul><ul><ul><ul><li>Long term preservation </li></ul></ul></ul><ul><ul><ul><li>Access to cultural heritage </li></ul></ul></ul><ul><li>Helsinki City Library </li></ul><ul><ul><li>Services for the public libraries and their users </li></ul></ul><ul><ul><li>(“Ask the librarian”) </li></ul></ul>
  9. 9. Future <ul><li>Major structural changes taking place in the network of universities and polytechnics, research institutes as well as in the public library sector </li></ul><ul><li>New technologies emerging </li></ul><ul><li>Budgets diminishing </li></ul><ul><li>=> Need to rethink the division of labor, including outsourcing </li></ul><ul><li>What is the core task of the library? </li></ul><ul><li>How should the tight budget be spent to get the most benefit? </li></ul>
  10. 10. Current Working Environment (to be revised completely 2008-2012) PORTAL for Information Retrieval LIBRARY Integrated System DOMS Digital object mgmt
  11. 11. Present state and challenges Digi-arkistot (julkaisu-arkistot, Digitalia) MetaLib Meta search SFX linking resolver (journal articles and ebooks) Back end Owned resources Licensed e-resources Other systems i.e. Learning environ- ments Museums and Archives Digital Archives and Instit. Archives Local Library Systems Library Portal User interface
  12. 12. Solution: New System Architecture <ul><li>Separating user interface from back end systems </li></ul><ul><li>Hiding back end systems from users </li></ul><ul><li>Public interface will replace current user interfaces (library systems, portals, institutional archives, DPS…) </li></ul><ul><li>Public interface: one installation, many institutions </li></ul>
  13. 13. The National Digital Library Libraries Archives Museums The Finnish Film Archive Back End Systems Memory institutions Public Interface Front end Long Term Preservation System
  14. 14. Indexes Front end user services Local customizable user interfaces Archives MetaLib Meta search SFX linking resolver (journal articles and ebooks) Back End Management Systems Owned resources Licensed e-resources Other systems i.e. Learning environ- ments Museums Local Library Systems
  15. 15. Current Working Environment (to be revised completely 2008-2012) PORTAL for Information Retrieval LIBRARY Integrated System DOMS Digital object mgmt
  16. 16. What is Outsourcing? <ul><li>Subcontracting a process to a third-party company </li></ul><ul><li>Involves the transfer of the management and/or day-to-day execution of a function to an external service provider </li></ul><ul><li>Contractual agreement to define the service </li></ul><ul><li>Involves a fee </li></ul>
  17. 17. Process <ul><li>Strategic level decision: to outsource a function or to perform it in-house </li></ul><ul><ul><li>Identifying and defining the activity </li></ul></ul><ul><li>Choosing an outsourcing partner => (EU) procurement process </li></ul><ul><ul><li>Request for Proposal (RFP) – invitation to tender and selection criteria/requirements </li></ul></ul><ul><ul><li>RFP dictates the structure and format of the supplier’s response </li></ul></ul><ul><li>“ Best and final offer” (BAFO) vs. EU regulations of sticking to the first offer </li></ul>
  18. 18. EU Procurement Process <ul><li>Type of process </li></ul><ul><ul><li>Open </li></ul></ul><ul><ul><li>Restricted </li></ul></ul><ul><ul><li>Accelerated restricted </li></ul></ul><ul><ul><li>Negotiated </li></ul></ul><ul><li>Award criteria </li></ul><ul><ul><li>Lowest price </li></ul></ul><ul><ul><li>The most economically advantageous tender in terms of… </li></ul></ul>
  19. 19. Contract Negotiations <ul><li>Contractual agreement to define how the client and the supplier will work together </li></ul><ul><ul><li>The scope of the service: what is included and what is not </li></ul></ul><ul><ul><li>Service level agreement (SLA) </li></ul></ul><ul><ul><li>The duties and responsibilities of each party </li></ul></ul><ul><ul><li>The (annual?) fee and extra services with their costs </li></ul></ul><ul><ul><li>The term of the contract; termination or renewal </li></ul></ul><ul><ul><li>Etc…. </li></ul></ul><ul><li>Signing of the contract + proxies when necessary </li></ul><ul><li>Service commencement </li></ul>
  20. 20. Reasons <ul><li>Cost savings </li></ul><ul><li>Focus on core business </li></ul><ul><li>Operational expertise / best practices </li></ul><ul><li>Access to talent </li></ul><ul><li>Improve quality </li></ul><ul><li>Catalyst for change </li></ul><ul><li>Enhance capacity for innovation </li></ul>
  21. 21. Risks <ul><li>Misaligned goals between buyer and supplier </li></ul><ul><li>High supplier switching cost </li></ul><ul><li>Poor communication between buyer and supplier </li></ul><ul><li>Lack of supplier capabilities or resources or capacity </li></ul><ul><li>Poorly defined SLA </li></ul><ul><li>No single view of quality among stakeholders </li></ul><ul><li>Unclear definition of duties of each party </li></ul>
  22. 22. Finnish Experiences of Outsourcing
  23. 23. LINNEA L ibrary IN formation NE twork for A cademic libraries <ul><li>The first joint integrated library system was purchased and funded by the Ministry of Education in 1988 </li></ul><ul><ul><li>20 universities (including the National Library) </li></ul></ul><ul><ul><li>National Repository Library </li></ul></ul><ul><ul><li>Library of Parliament </li></ul></ul><ul><li>All university libraries of the country formed an informal network, using the same software, but each having a separate database and a separate server </li></ul><ul><li>The Automation Unit of Finnish Research Libraries (created in the Ministry of Education in 1974, moved to the National Library in 1993 ) coordinated the network </li></ul>
  24. 24. Linnea2 Consortium (2000 -) <ul><li>Motivation for cooperation: will to work together, share resources, improve services, join forces, save money </li></ul><ul><li>openness to new technical and organizational solutions, looked at from a new perspective </li></ul><ul><li>Signed a contract with Endeavor Information Systems Inc (EISI) (February 2000) </li></ul><ul><li>Bought a SUN E10000 server (June 2000) </li></ul><ul><li>Outsourced its maintenance to CSC – IT Center for Science (June 2000) </li></ul><ul><li>In 2007 Sun E10000 server modernized into Sun M9000 </li></ul><ul><ul><li>Sun M9000 hosts 50+ Voyager databases, Aleph Union catalogue, Nelli portal (MetaLib/SFX) for 60+ libraries </li></ul></ul>
  25. 25. Case 1: Outsourcing the Server Maintenance <ul><li>Decision to centralize: 17 servers -> one server </li></ul><ul><li>Centralization depends on </li></ul><ul><ul><li>available data transmission network </li></ul></ul><ul><ul><li>capabilities of the software </li></ul></ul><ul><ul><li>the state of the computer technology </li></ul></ul><ul><li>Hosting the server? </li></ul><ul><ul><li>=> EU procurement process </li></ul></ul>
  26. 26. EU Procurement Process <ul><li>Available service providers </li></ul><ul><ul><li>CSC – a non-profit organization owned by the Ministry of Education </li></ul></ul><ul><ul><li>University IT Centers </li></ul></ul><ul><ul><li>IT companies: IBM, Fujitsu, etc. </li></ul></ul><ul><li>Restricted EU Procedure with RFP </li></ul><ul><li>=> CSC made the best offer, the most economically advantageous tender (also the cheapest one!), and was chosen </li></ul>
  27. 27. Benefits of Outsourcing to CSC <ul><li>Major savings in workload & staff costs (centralization vs. decentralization) </li></ul><ul><li>Improved maintenance coverage </li></ul><ul><ul><li>7 x 24 (also during holidays and sick leaves!) </li></ul></ul><ul><li>CSC staff have excellent UNIX and networking skills </li></ul><ul><li>Certain software tasks have been centralized to CSC, in addition to the server maintenance </li></ul>
  28. 28. Tasks and Division of labour Hardware maintenance provider CSC Customer organizations - libraries National Library of Finland (service unit) <ul><li>Development of sw </li></ul><ul><li>Maintenance of sw </li></ul>Third party systems vendors Software vendor Ex Libris <ul><li>Coordination of system administration </li></ul><ul><li>Coordination of cooperation </li></ul><ul><li>Communication with Ex Libris </li></ul><ul><li>Developing services </li></ul><ul><li>Integration of infrastructures </li></ul><ul><li>APIs </li></ul><ul><li>Cooperation with NLF </li></ul><ul><li>Cooperation with libraries </li></ul><ul><li>System administration </li></ul><ul><li>Tailoring services to their users </li></ul><ul><li>Maintenance of hardware </li></ul><ul><li>Certain software tasks </li></ul><ul><li>Cooperation with hw vendor </li></ul><ul><li>Cooperation with NLF </li></ul><ul><li>Cooperation with libraries </li></ul>
  29. 29. Case 2: Libraries Outsourcing ILS Systems Administration to the National Library <ul><li>Structural changes taking place in the network of universities and polytechnics require rethinking of labor division </li></ul><ul><li>Lack of skilled system administrators: in some libraries the expertise may be held by just one person (or by no one!) </li></ul><ul><li>Financial pressure – need to save money </li></ul><ul><li>=> A demand from the libraries to the National Library to offer the service </li></ul>
  30. 30. System Administration Service <ul><li>Wide interest among libraries </li></ul><ul><li>Three customers at the moment </li></ul><ul><li>Service tailored according to customer needs </li></ul><ul><li>One basic contract, with tailored appendices (esp. the list of services included) </li></ul><ul><li>Fee based on the service level and (estimated) staff working time </li></ul><ul><ul><li>Additional services can be negotiated separately with an additional fee </li></ul></ul>
  31. 31. Service Description <ul><li>The system administration team at the NL replaces the system administrator at the library </li></ul><ul><ul><li>No one at the library has access to the system level/server </li></ul></ul><ul><ul><li>System level operation and contacts/communication to CSC is NL’s responsibility </li></ul></ul><ul><li>A contact person at the library: all communication to and from the NL is to go via the contact person </li></ul><ul><li>Communication with the library’s customers is the library’s responsibility </li></ul>
  32. 32. Case 3: ILL Hardware Outsourced to Relais International <ul><li>The Linnea libraries made a decision to buy Relais Enterprise ILL system from Relais International </li></ul><ul><li>The hosted solution was chosen </li></ul><ul><li>The hardware side will be outsourced to Relais International in Canada (“offshoring”) </li></ul><ul><ul><li>Outsourcing is a part of the software contract </li></ul></ul><ul><li>Contract negotiation in progress </li></ul>
  33. 33. To Outsource or Not to Outsource?
  34. 34. Questions to Be Asked <ul><li>What is our core task? </li></ul><ul><li>What do we want to do ourselves? </li></ul><ul><li>What is our expertise? </li></ul><ul><li>Can someone else do some of the work better and cheaper ? </li></ul><ul><li>=> identifying the function to be outsourced </li></ul><ul><li>Can we join forces together with others: centralize and outsource? </li></ul>
  35. 35. Starting the Process <ul><li>Do we need to follow the EU regulations? </li></ul><ul><ul><li>Yes: structured process, easy to follow </li></ul></ul><ul><ul><li>No: you can follow the EU guidelines anyway! </li></ul></ul><ul><li>Harvesting possible suppliers </li></ul><ul><li>RFP: very important! </li></ul><ul><ul><li>The selection must be based on the requirements and criteria listed </li></ul></ul><ul><li>Objectivity! </li></ul>
  36. 36. Costs <ul><li>What is the cost of the function outsourced vs. performed in-house? </li></ul><ul><li>Fixed costs or more variable pricing options? </li></ul><ul><ul><li>What is included? </li></ul></ul>
  37. 37. Contract <ul><li>The scope of the service: what is included and what is not </li></ul><ul><li>Service level agreement (SLA) </li></ul><ul><li>The duties and responsibilities of each party </li></ul><ul><li>The (annual?) fee and extra services with their costs </li></ul><ul><li>The term of the contract; termination or renewal </li></ul><ul><li>Etc…. </li></ul>
  38. 38. Thank you! [email_address]