UNSD Regional Workshop on Census Data Processing for the English speaking African Countries: Contemp

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• Outsourcing of Census Operations
• United Nations Statistics Division

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Overview of Presentation

• Reasons for outsourcing
• Determining if and what to outsource
• Outsourcing procurement process
• Types of outsourcing
• Issues to consider when outsourcing
• Conclusions

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Why outsource

• Lack of necessary technological expertise or
  equipment at NSO
• Improve timeliness and accuracy of the data
• So that NSO can concentrate on their core
  substantive work
• Because the job to be outsourced is complex
• NSO gains access to external expertise and
  knowledge

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Determining if and what to outsource

• A decision on whether or not to outsource should
  be based on
• Defining the technical needs of the NSO in terms
  of expected output
• Specifying the requirements for the delivery of
  the output in terms of timeliness, quality
  assurance, accuracy, confidentiality, etc
• An assessment of the market vis-à-vis the NSO
  needs to determine if it would be feasible to
  undertake the outsourcing

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Defining technical needs for outsourcing

• NSO should clearly define the desired output or
  product for which outsourcing may be needed
• Document should include
• Objectives of the project
• Output or outcome to be achieved
• Time frame

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Output specifications

• Contractor and NSO should have a shared
  understanding of the requirements of the
  contract, including objectives, expected outcomes
  and priorities
• Clear Specifications, including standards to be
  met, are key to ensuring you get what you want
  and that everyone understand what is expected
• Specifications should describe in detail the
  tasks that are the responsibility of the NSO and
  of the contractor
• Specifications should include detailed milestones
  with deliverables against which performance
  should be evaluated
• Specifications for the output should also address
  requirements for timeliness, data confidentiality
  and security, quality assurance

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Assessment of the market

• Its important that NSO has a clear understanding
  of the market before embarking on outsourcing
• Important for
• Assessing technological possibilities for the
  work to be outsourced
• Assess potential competitors for the project
• Estimating cost of the outsourcing
• Assessing whether NSO can afford the outsourcing
• Helping with preparation for the tender

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Outsourcing procurement process

• Bidding process may take a long time
• Choice of contractor should be based on a
  transparent competitive process
• Tender process may differ by country, but need
• Rules for tender including announcement with
  deadlines
• Documents on whats being outsourced
• NSO may collaborate with other government
  departments in order to learn from their
  experience in procurement

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Choice of contractor

• Its advisable to choose a contractor with a
  proven record of data processing preferably in
  the region
• Contract should be awarded to those who meet the
  specified requirements and should not be based
  only on cost but on other considerations as well,
  including confidentiality, accuracy and
  timeliness
• Its important to rank the criteria upon which
  the contractors are being assessed
• A grid may be constructed showing the performance
  of the contractors against the criteria for the
  assessment
• As part of process prospective contractors should
  undergo a competitive test, e.g., having
  different companies scan a stack of
  questionnaires assessing their performance

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Example of Outsourcing Schedule - France
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Types of contracts and of outsourcing

• There are different types of contracting and of
  outsourcing with advantages and disadvantages
• Contract types
• Full contract (contractor performs all outsourced
  work)
• Mixed contract (different aspects of the work are
  outsourced to different companies)
• Sub-contracting (contractor contracts out some of
  the work to another company)
• While the mixed contract has the advantage of
  getting the best for different aspects of
  contracted work, it presents challenges in terms
  of management and also assessing responsibility
  for different contractors
• Outsourcing ranges from total outsourcing of the
  operation to variants of combining outsourcing
  components of the project and use of in-house
  developed systems

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Administration of the contract

• Its important to have a detailed legal document
  (contract) showing obligations and
  responsibilities of NSO and contractor
• The contract should
• Specify clear lines of authority with NSO
  retaining management of the overall operation
• Specify penalties for breach of contract on the
  part of NSO or contractor
• However, specify the possibility of the NSO to
  break the contract or to delay (e.g., if the
  census is delayed) and the corresponding
  conditions
• Be flexible enough to allow amendments

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Issues to consider when outsourcing

• Need to plan for data processing as part of
  overall census planning
• Need to test process
• Differing objectives
• NSOs inalienable responsibility for the whole
  census operation including for the outsourced
  parts
• Data confidentiality and security
• Setting quality assurance standards for project
• Risk management

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Need for adequate planning

• Planning for data processing should be part of
  overall census planning
• Plans for data capture should take into account
  the census form to be used and vice versa
• It may be advisable to choose a data processing
  contractor who will also print the census forms
• Plans for training of enumerators should also
  take into account method of data capture to
  ensure proper filling in and handling of census
  form

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Testing the system

• Data processing system should be tested and
  problems corrected
• Testing should cover all aspects of the process
• More testing is required at beginning of process
  to allow fine tuning of the system until the
  desired result is obtained
• Form design should be finalized early enough to
  be used in testing
• Start early as long lead time is required
• The pilot census is an opportunity to test the
  data processing infrastructure
• Testing of the system should be included in the
  contract specifications
• Learn from experience of others

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Differing Objectives

• There is likely to be a difference in objectives
  between NSO and contractor
• Contractor is interested in more pay for less
  work so as to obtain a profit for their company
• NSO is interested in paying less for higher
  quality output produced in minimum time

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Data confidentiality and security

• Is a bigger concern with outsourcing as outside
  contractors handle completed questionnaire
  containing individual data
• However, whether census operations are outsourced
  or not, data confidentiality and security remain
  of outermost importance
• NSOs are responsible for data confidentiality in
  terms of both perception and reality
• NSOs should assure the confidentiality of the
  data even when data processing are outsourced
• The NSO should ensure that contractors have
  instituted strict safeguards to prevent
  unauthorized access to information
• Contractor staff should be subject to same data
  confidentiality rules as NSO staff and be
  required to sign a legal undertaking
• Contract should include penalties for data
  disclosure and misuse

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Quality assurance

• NSO is responsible for managing the quality of
  the census output
• NSO should ensure that contractor has captured
  data accurately and in a timely and
  cost-effective manner
• Setting of quality assurance criteria and setting
  up a monitoring system for data processing are
  important
• Monitoring quality assurance for data capture can
  be difficult if NSO and contractor do not have
  same set of criteria for assessment and
  monitoring
• NSO may not have enough experience and expertise
  to set up necessary criteria for assessment,
  e.g., of error rates, and monitoring especially
  with technology that is new

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Monitoring the outsourcing project

• Ability of the NSO to manage and control
  outsourced work is critical to the success of the
  project
• Ongoing monitoring is crucial to ensure continual
  review of achievements against originally
  specified milestones
• Monitoring very critical when outsourced work in
  undertaken away from the NSO site
• A system for monitoring progress should be
  in-built into the contract
• Monitoring should also include regularly
  scheduled meetings
• Aim for clear and open communications with
  contractor

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Risk management

• Outsourcing does not transfer risks from NSO to
  contractor
• Outsourcing may bring new risks
• NSO is to blame for all problems and so assumes
  all risks
• NSO should develop a risk management strategy for
  the outsourced work

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Conclusions

• Decision to outsource depends on assessment of
  situation
• Need for clear specifications of the contract
• Importance of testing the system
• NSOs role in management and monitoring of
  outsourcing
• Much to learn from experience of others

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• Thank you.