IS outsourcing in your GIS department's future?
While this option will only work if there are sufficient
management resources available to handle two outsourcing vendors simultaneously, the
client benefits by bringing in the best available vendors for the relationship. The
outsourcer must have sufficient GIS resources and expertise to handle the specific needs
of the corporation. For example, GIS systems such as Smallworld or Intergraph
FRAMME require knowledge and skills that are not readily available. An outsourcing
vendor with experience in the specific GIS, along with experience in providing a variety
of services in various business environments, can supply many innovative solutions.
It is important that affected employee concerns about the outsourcing selection be
handled with clarity and openness. Employee participation is key to a successful
relationship. If the corporation is considering transferring employees to the outsourcing
vendor, they must be assured about the new working relationship, benefits, seniority and
retirement. Contracts frequently guarantee a position for at least one year and include the
opportunity to obtain a position at another of the outsourcing vendor's sites, as well as
provide preferential treatment for the transferred employee. Typically, opportunities
within the outsourcing vendor are good in that the vendor provides many different
services to many different customers.
Transition
Mistakes made during the transition of the GIS to the outsourcing vendor can be difficult
and expensive to rectify, creating a high risk of inadvertently nullifying expected
benefits. Dramatic changes in working relationships and processes are best managed with
a comprehensive change management program. For example, long-term employees with
no desire to change jobs may be unhappy and resentful or other departments may believe
they will not receive the level of service required. An experienced consultant outsourcing
vendor can provide strategies to smooth the transition such as internal communications,
meetings and presentations to give employees and other corporate departments an
understanding of the new relationship.
Adequate time must be provided for the transition. A frequent problem is rushing the
transition to "get it over with quickly," with the result that the change is inadequately
managed. This can result in service levels dropping below contracted minimums and
senior managers and other departments doubting the benefit of outsourcing. In addition,
the outsourcing vendor must have sufficient, if not extra, resources available for the first
six months of the contract. As the transition progresses and the client becomes
comfortable with the level of service, excess resources may be removed. The first few
months of the outsourcing contract, if not handled properly, can make the remainder of
the contract difficult or nearly impossible to manage.
Management and Contract Issues
Managing a long-term outsourcing contract and vendor from the client's point of view is
not an easy task. To ensure that the relationship remains workable and meets the needs of
both parties, careful attention from management is needed in several areas. The client
may underestimate the amount of time needed to manage the relationship and lose control
by allowing the vendor to assume responsibility. Service levels may deteriorate as the
vendor is not in the same business as the client.
Lack of management involvement may be caused by using a team to manage the contract
that is different from the team that negotiated the contract. The new team may not
understand the contract's intentions. Additionally, a lack of flexibility in the contract can
cause dissatisfaction as issues such as technologies, personnel, business conditions and
other concerns no longer meet initial assumptions. Pricing and service levels set at the
beginning of the contract that do not have a mechanism for adjustment or improvement
may also cause dissatisfaction.
Finally, cultural differences between the outsourcing vendor and the client may result in
misunderstanding and distrust. A disruption in continuity by transferring employees from
the pre-outsourced environment to the vendor's team may have significant adverse
effects on the outsourcing relationship.
All of these issues can create significant barriers to successfully outsourcing the GIS
department. Careful research, planning, and dedicated management can help to ensure
that that the outsourcing effort is not derailed.
Conclusion
With the growth of outsourcing as a business strategy, the appearance of qualified firms
to handle GIS outsourcing, and the desire of utilities and other businesses to concentrate
resources on core-competencies, the likelihood of your GIS department being outsourced
is increasing. Whether the outsourcing vendor is generalist IT or specialized GIS
supplier, if you are transferred to the outsourcing vendor, you can expect opportunity for
you to participate in bringing new and innovative services to the GIS department. As a
manager of the GIS, you can expect improved service levels, predicable costs and a better
return on investment.
Is outsourcing in your GIS department's future? The likely answer is, "Why not?"
