Outsourcing in the Irish Public Sector
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This document discusses IT spending trends in Ireland in 2005. It shows that the government and manufacturing sectors spent the most on IT, over €383 million and €424 million respectively. The majority of IT spending went to managed services, outsourcing, and consulting/advisory services. There was growing interest in managed services deals and right sourcing various IT functions in both the public and private sectors. However, resistance to outsourcing remained a challenge due to people and scale issues.
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Outsourcing in the Irish Public Sector
- 1. TIF Managed Services in the Public and Private Sectors 2005 Oisín Byrne Managing Director Research, Connect, Answer™
- 2. IT Spend by Industry Vertical Sem i-State €266 Financial Services €502 Services €141 Retail & Wholesale €241 Manaufacturing Healthcare €100 €424 Com m unications €158 Governm ent €383 Research, Connect, Answer™
- 3. IT Service Spend in 2005 2004 2005 60 SW Maint 55 85 HW Maint 81 161 Managed Services 101 239 Outsourcing 200 200 AD/SI 220 170 Consulting/Advisory 180 0 50 100 150 200 250 300 Spend in € millions Research, Connect, Answer™
- 4. Right Sourcing: Many offerings D/R BPO Printing AD Outsourcing Payment Processing Shared Services Hosting Claims Processing Call Center Outsourcing IT Outsourcing Payroll Help Desks Processing Research, Connect, Answer™
- 5. Market Drivers Resistance to Outsourcing • People Issues • Scale of Operation • Market Confusion • Over focus on Costs • Length of Deals • Rigid SLAs based on IT not Business • Market needs more creative offerings • Research, Connect, Answer™
- 6. Drivers in Public Sector • De-Centralisation – Separate People, Process and Systems • Shared Services – Cluster of Departments • Right Sourcing – Mix or blend of offerings • 2006 to see lots of activity – Small Managed Service Deals – Large Managed Service Tenders Research, Connect, Answer™
- 7. Drivers in Private Sector • Outsourcing Backlash • Lack of understanding of Big Picture • Progressive or Selective outsourcing – AD Outsourcing – APP Outsourcing – Call Centre Outsourcing – Desktop Outsourcing – Network Outsourcing – Security Outsourcing – Website Hosting Research, Connect, Answer™
- 8. oisin.byrne@ireach.ie Close and Questions Research, Connect, Answer™