Collaboration and Partnerships Leveraging ICT Technologies as a Business Enabler solutions Driven by

1
Collaboration and Partnerships Leveraging ICT
Technologies as a Business Enabler solutions
Driven by Justice and e Governance

• Arindam Bose
• Advisor IT
• Government of Botswana

Economic Benefits of Outsourcing Technology in
Justice and Government
2

• Private and Public collaboration for Delivery of
  e governance including Justice
• Effects on business entrepreneurship
• Effects on the Social Economy

3
Governance

• Governance as the set of traditions and
  institutions by which authority in a country is
  exercised specifically
• The process by which those in authority are
  selected and replaced
• VOICE AND ACCOUNTABILITY
• POLITICAL STABILITY ABSENCE OF VIOLENCE /
  TERRORISM
• The capacity of government to formulate and
  implement policies
• GOVERNMENT EFFECTIVENESS
• REGULATORY QUALITY
• The respect of citizens and state for
  institutions that govern interactions among them
• RULE OF LAW
• CONTROL OF CORRUPTION

4
Government

• System of social control under which the right
  to make laws, and the right to enforce them, is
  vested in a particular group in society.
• The basic law determining the form of government
  is called the constitution and may be written, as
  in the United States, or largely unwritten, as in
  Great Britain.
• Modern governments perform many functions
  besides the traditional ones of providing
  internal and external security, order, and
  justice most are involved in providing health
  and welfare services, regulating the economy (
  or promotional efforts), and establishing
  educational systems.

5
Justice

• Justice is the quality of being just fairness
  the principle of moral rightness equity
  Conformity to moral rightness in action or
  attitude righteousness the upholding of what is
  just, especially fair treatment and due reward in
  accordance with honour, standards, or law. It is
  the administration and procedure of law. Justice
  is conformity to truth, fact, or sound reason and
  to treat adequately, fairly, or with full
  appreciation. It is a subset of governance.

6
And for governance today

• There are measures to determine and compare all
  this.
• There are international agencies measuring and
  public ally reporting all this

7
Technology . e Governance

• Application of the principles of knowledge,
  science and mathematics to increase the
  efficiency of human endeavour
• In the context of this conference Information
  Technology is most relevant
• Emergence of the concept of e Government then
  on to m Government
• Increasing the efficiency of all the governance
  functions using Technology

8
e Governance

• Refers to the use by the general Government
  (including the public sector) of electronic
  technology (such as Internet, intranet, extranet,
  databases, decision support systems, surveillance
  systems and wireless computing) that have the
  ability to transform relations within the general
  government (bodies) and between the general
  government and citizens and businesses so as to
  better deliver its services and improve its
  efficiency."

9
Online e Government

• The delivery of public services, where there is
  an online or Internet based aspect to the
  delivery of the services
• The conduct of government business where the
  activities of those involved in the process of
  government itself (such as legislators and the
  legislative process) where some electronic or
  online aspect is under consideration.
• Voting where some technological aspect is under
  consideration.

10
Non-website-specific - Internet-based e Government

• Aspects of Internet-based e Government that
  aren't specific to websites include
• the use of Email in the provision of government
  services and the conduct of government business
• the use of online community facilities, such as
  message boards, newsgroups and electronic mailing
  lists
• the use of real-time Internet facilities, such as
  online chat and instant messaging technologies

11
Non-Internet aspects of e Government

• Provision of Government Services by
• Telephone (Call centers)
• Fax
• Mobile phone (and PDA) based communications
  technology (such as SMS text messaging and MMS as
  well as 3G, GPRS, Wi F i, Wi MAX and Bluetooth)
• General Government IT, moving to e Government, in
  many cases because it is becoming ever more
  difficult to disentangle internal (i.e.,
  non-"citizen-facing") IT resources and projects
  (which have hitherto mostly not been seen as part
  of e Government) from external (and thus mostly
  already seen as e Government) service provision.

12
Non-Internet aspects of e Government

• Surveillance systems, CCTV, tracking systems,
  RFID, biometric identification, road traffic
  management and regulatory enforcement
• Identity cards, smart cards and other NFC
  applications
• Polling station technology (where non-online
  e-voting is being considered)
• TV and radio-based delivery of government
  services (this often has a crossover with the
  Internet, but also includes many non-Internet
  based aspects and projects such as Digital Audio
  Broadcasting (DAB) Digital TV and High Definition
  TV (HDTV) provision)

13
Why outsource Technology in Government ?

• Better Governance using technology -
  e-Governance
• As technology improves the quality of services,
  the public expectations rise needing rapid
  increases in capacity.
• The challenges include management to keep pace
  with advances in technology
• Can Government practices manage a fast changing
  technology management scenario?
• Does Government concentrate on managing
  Governance or specialise in establishing and
  operating technology?

14
Velocity of change in Technology Today

• All of world trade in 1949 happens in a single
  day today
• The equivalent of all science done in 1960
  happens today in one day
• All of the foreign exchange dealings around the
  world in 1979 happens today in a single day
• All the telephone calls made around the world in
  1984 happen in one day today
• The equivalent of all e-mails sent in 1989
  happens in one day now.

15
Internet Today
Internet Users Worldwide (Millions)
Source IDC Internet Commerce Market Model, 2005
16
Velocity of change in Technology Today
Vo IP Handsets Installed
Millions
2005
2010
2015
Source IDC 2005
17
Where is Technology Going?
Broad Band Households
Source IDC 2005
18
Where is Technology Going?
Millions
Mobile Devices in Use
2005
2015
2010
Source IDC 2005 communicating devices only
19
Why outsource Technology in Government ?

• Government should identify its core competences
  and concentrate on them --- outsource technology.
  
• The Government should keeping core technology
  capability, strategy, service level management
  and control only.

20
Objectives of this paper

• Propose Outsourcing A means to address the
  challenge of e-governance strategies word wide.
• Practices for successful out sourcing in
  Government.
• Clarity of outsourcing concepts.
• Survey of experiences of outsourcing buyers and
  providers.
• Economic and social benefits of outsourcing.

21
What is outsourcing ?

• Contracting with a private-sector firm to take
  responsibility for a function or process for
  which the Government remains accountable.
• This definition excludes short-term project work
  and stops short of privatization, where the
  government no longer has accountability for the
  function.
• This definition of outsourcing is consistent
  with the views of close to 90 percent of the
  executives interviewed by Accenture recently in
  a worldwide survey.

22
Government Outsourcing Value Pyramid
23
Outsourcing models

• The growth in outsourcing is driven by different
  objectives in all cases. National Governments
  pursuit of value through outsourcing is taking
  two significantly different trajectories
• the efficiency trajectory and the
  transformational trajectory
• set by the countries unique priorities.

24
Outsourcing by types
BPO Outsourcing (180 Responses)
BPO outsourcing (108 responses)
Source Outsourcing in Government Pathway to
value ACCENTURE
25
An Opinion Poll Why Outsource?
Objective vs. No. of Responses

• Source Outsourcing in Government Pathway to
  value ACCENTURE

26
An Opinion Poll Why Outsource?
Objective vs. percentage who feel objectives are
met

• Source Outsourcing in Government Pathway to
  value ACCENTURE

27
Efficiency trajectory

• Toward cost reduction and productivity with focus
  on outsourcing as a way to trim costs and
  redirect capital to more mission-critical
  functions.
• Consistent methodologies have led to great
  improvements in process efficiency and cost.
• Mature end of the spectrum are countries like
  Singapore, Japan, Hong Kong,
• Focus on efficiency consistent across the Asia
  Pacific region.

28
Transformational trajectory

• Driven by bold objectives with high potential
  value.
• Approach outsourcing as a tool to achieve a bold
  strategic agenda
• Often driven by a pressing need to reform due to
  citizen demands or severe budget deficits in an
  accelerated time frame.

29
Outsourcing maturity trajectories
30
Clarity on Outsourcing concepts

• Partnership does not necessarily result in
  successful outsourcing Well defined Contracts
  are the key to success.
• Competitive bidding process not always lead to
  best deal.
• Outsourcing does not always reduce management
  complexity
• It does not mean a malfunctioning process can
  only be outsourced after correction
• It does not necessarily mean you have to
  outsource the whole function

31
Leading Practices in Government Outsourcing

• Shaping the relationship to the situation
• Negotiating and contracting effectively
• Managing Institutionalizing flexibility and
  innovation workforce issues
• Managing the ongoing relationship
• Ensuring strong performance

32
Shaping the relationship to the situation

• Provide central guidance, but leave
  accountability with agency executives.
• Drive outsourcing decisions through strategy.
• Explore options and learn from others before
  going to tender.
• Design a business model, not a deal.

33
Negotiating effectively

• Take ownership of the negotiation process.
• Include values and principles in the contract.
• Use stakeholder analysis for key decisions.
• Plan for the future during the contracting
  process.

34
Managing workforce issues

• Recognize that workforce management issues are
  not insurmountable they just take work.
• Adjust workforce solutions to your situation.
• Set a prudent pace for dealing with workforce
  transitions.
• Executives will want to take enough time to
  communicate thoroughly with the people who will
  be affected, to address their concerns and to
  provide pathways to new roles.

35
Managing the ongoing relationship

• Open the books on both sides.
• Leverage procedures appropriately to address
  sensitive issues.
• Maintain a whole of business perspective.
• Use conflict as an opportunity to improve the
  relationship.

36
Ensuring strong performance

• Maintain critical expertise.
• Tap proven methodologies.
• Track qualitative performance indicators and
  quantitative ones.

37
Institutionalising flexibilityand innovation

• Make your innovation plans explicit.
• Remain externally focused.
• Tap the resources of a multinational corporation.
• Achieving high-level outcomes in a changing
• environment requires institutionalizing
• innovation as part of the outsourcing process.

38
Clarity on Outsourcing concepts

• Next-generation outsourcing
• Multi sourcing
• Utility computing
• Global delivery models

39
Outsourcing in 2004 and 2005
40
Satisfaction with IT outsourcing
41
Outsourcing benefits
The occurrence of outsourcing benefits were
higher on the side of the provider compared to
buyers.
42
(No Transcript)
43
(No Transcript)
44
(No Transcript)
45
Source Summer 2004 Outsourcing Survey TSG
Research report.
46
Outsourcing Rationale
Source2004 Global IT Outsourcing study by
Diamond cluster
47
Public Private Partnership

• Shared authority and responsibility
• Shared liabilities and risks
• Joint investment / subsidy
• Shared benefits

48
Clarity on Public Private Partnership

• The reason why governments enter into P3 is not
  to avoid investment.
• It is not necessarily that government can finance
  the cost of services at a lower cost than the
  private sector
• Government does not loses control over the
  provision of services by entering into P3
• Government staff does not lose under P3
• The quality of service will not decline under P3
  and service cost will not increase to pay for the
  private partners profit

49
ECONOMIC AND SOCIAL BENEFITS OF OUTSOURCING

• When it works, outsourcing decreases costs,
  increases flexibility and discipline, enhances
  expertise, and provides the freedom to focus on
  core business capabilities
• Potential benefits of IT outsourcing
• Efficiency Trajectory Cost savings only.
• Strategic and financial advantages Transformation
  Trajectory

50
ECONOMIC AND SOCIAL BENEFITS OF OUTSOURCING

• Enhanced specialised expertise Cost-effective to
  rely on consultants to provide these services.
• Improve efficiency/ Freedom to focus on core
  business capability Shifting Government focus
  from being a service provider of non-core
  services to a facilitator for service provision
  and thus allowing its internal resources to focus
  their attention much more on those activities
  which are its core mandate

51
ECONOMIC AND SOCIAL BENEFITS OF OUTSOURCING

• Accommodate peak demand Contractors can
  accommodate fluctuating demand better than
  Government departments because of a flexible
  staffing policy.
• Better risks management outsourcing allows
  Governments to shift risks to contractors, which
  both helps achieve the most efficient risk
  allocations allows risk to be used as a
  management tool not something to fear
• Lowering costs Harnessing the experience of the
  private Sector to improve service delivery,
  efficiency helps archive cost savings

52
ECONOMIC AND SOCIAL BENEFITS OF OUTSOURCING

• Positive growth of the ICT Industry Business
  Government the major consumer in developing
  countries generates the critical mass required
  for a viable industry to start.
• Outsourcing with a combination off shore
  sourcing, near sourcing and inshore sourcing with
  its supporting services to all this activity
  would lead to economic growth.

53
ECONOMIC AND SOCIAL BENEFITS OF OUTSOURCING

• Efficient services to the people Governments
  following the Efficiency or the Transformational
  Trajectories would give better and more efficient
  services by concentrating on Governance.
• Thus provide the society with better services
  increasing the overall efficiency and positive
  socio economic growth.

54
ITO and BPO Business/ industry size
55
Findings - Outcome

• Next-generation IT outsourcing is here to stay
  creating significant value, ensure competitive
  advantage despite challenges.
• Benefits not automatic. Principles and best
  practices for e Government outsourcing necessary.
  
• Government must be in control by possessing the
  core knowledge of technology strategy, research
  and competence in contracting and service level
  management.
• Human resource investments in Government must
  focus on these areas.

56
Thank you