IT Strategic Sourcing at the IMF: the View from the Statistics Department

1
IT Strategic Sourcing at the IMF the View
from the Statistics Department

• Meeting on the Management of Statistical
  Information Systems (MSIS), Geneva, May 8-10,
  2007
• Patrick Hinderdael, Economic Systems, TGS
• Cathy Wright, Statistical Information Mgt, STA

2
Context

• The pace of global sourcing is rapidly increasing
  in the IT industry. Gartner (2005) predicted that
  through 2012, the combined forces of
  globalization and global sourcing will drive
  organizations to standardize and improve their
  business processes to achieve greater agility and
  an additional cost saving of between 25 and 40
  percent.
• The 2005 IT Review concluded that the IMFs IT
  outlays are not significantly out of line with
  comparator institutions, but there are
  opportunities for gains in effectiveness and
  efficiency through global sourcing. This finding
  was supported by IMF management and the Executive
  Board.

3
Potential Benefits, Costs, and Risks

• Potential Benefits
• Cost savings
• Faster delivery of IT services
• Quality and consistency of IT
• Costs and Risks
• Operational complexity of many projects
• Reputational and security risks
• Business operations
• Potential legal challenge

4
Key Elements of the IT Strategy

• Take advantage of global sourcing to reduce labor
  costs and deliver IT services more efficiently.
• Move towards performance-based contracting with
  strategic partner and reduce dependency on the
  staff augmentation model.
• Develop a long-term IT staffing model and
  organizational structure to support the strategy
  and industry best practices.
• Strengthen IT and information security practices.

5
Milestones Since MSIS June 2006

• Analysis of responses to RFP and selection of
  Tata Consulting Services
• Two small pilot projects completed
• Detailed portfolio analysis of 25 projects
• Transition of projects will begin May 2007

6
Next Steps for the Statistics Dept

• August 2007 will begin the transition and
  implementation of 3 major projects
• Integrated Correspondence System (data
  collection)
• Data Dissemination Standards Bulletin Board
• Economic Data Facility/Data Management for Excel

7
Key Business Concerns

• Governance achieving balance among business,
  IT, and the sourcing partner
• Project staffing and continuity
• Hidden costs to business stakeholders
• Risks and adequate mitigation strategies

8
Main Work Streams
Year 3
Year1
9
Potential for a Successful Outcome

• Active and effective partnership between business
  and IT partners
• Greater rigor applied to application development,
  testing, and support
• Improvement of IT and business processes
• To be continued...at MSIS 2008