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Bucking the Trend Insourcing Technology Robert M. Kuhn, Ph.D. Executive Director of Technology Simmons College.

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Presentation on theme: "Bucking the Trend Insourcing Technology Robert M. Kuhn, Ph.D. Executive Director of Technology Simmons College."— Presentation transcript:

1 Bucking the Trend Insourcing Technology Robert M. Kuhn, Ph.D. Executive Director of Technology Simmons College

2 Copyright Robert M. Kuhn, This work is the intellectual property of the author. Permission is granted for this material to be shared for non- commercial, educational purposes, provided that this copyright statement appears on the reproduced materials and notice is given that the copying is by permission of the author. To disseminate otherwise or to republish requires written permission from the author.

3 Agenda Why outsource? Remember 1998 Choices 1998 Environment 2003 Choices 2003 Conclusions

4 Why H.E. Outsources Hassett, et al., IT Outsourcing in Higher Education, ECAR, 2002

5 Benefits of Outsourcing Hassett, et al., IT Outsourcing in Higher Education, ECAR, 2002

6 Remember 1998 Compensation for recent IT graduates: Starting salaries of $40,000 – $60,000 Up to $10,000 signing bonus Immediate stock options Computerworld June 22, 1998

7 Remember 1998 Castronuovo et.al. Net Worth, Network World, Nov. 1998

8 Remember 1998 Castronuovo et.al. Net Worth, Network World, Nov. 1998

9 Simmons College Four-year, private, non-sectarian undergraduate women's college with a comprehensive liberal arts and professional curriculum One of New England's most successful undergraduate programs for adult women, the Dix Scholars Program Co-ed graduate programs in health studies, education, liberal arts, communications management, social work, and library and information science MBA program designed specifically for women

10 Simmons Students 1,823 undergraduate women students 2,500 graduate women and men students 20% self-reported: African American, Latina, Asian, Native American, and multi- racial students 7% international students 40 states and 39 countries represented

11 Simmons College, 1998 Major immediate challenges: Terminal based Computers: eclectic and quaint Slow network Deferred major ERP upgrade

12 Simmons College, 1998 ½ person for technology support 4 wired classrooms 0 classes with an online presence 0 remote access to online library resources 0 residence halls wired 797 total computers on campus

13 Outsourcing Decision Need to build quickly Employment climate, 1998 “Booster rocket” Vendor Selection: –Higher Ed experience, particularly implementing infrastructure –Neutral w.r.t. HW and SW choices –Expertise with ERP (Datatel)

14 Organization ’98 – ‘03 Office of Information Technology Outsourced Management Web Design AV/Media Lab Management Training Faculty Dev’t Academic Technology Internal Management Admin. Comp Networking Help Desk

15 Organization ’98 – ‘03 Admin. Comp Networking Help Desk Office of Information Technology Outsourced Management Existing group and manager augmented with 2 outsourced technical personnel New group created, outsourced manager + technical person, largely Simmons staff 2 existing personnel, group formed, outsourced manager + 2 technical personnel Outsourced Director, Simmons admin

16 Financial Commitment IT Spending as % of Operating Budget

17 OIT Org. 2003

18 Snapshot 2003 After (2003) 20 technology support staff All 45 classrooms wired 542 courses online in Fall 04 8 million accesses to library databases Every room wired 1,867 total computers on campus Before (1998) ½ person for technology support 4 wired classrooms 0 classes with an online presence 0 remote access to online library resources 0 residence halls wired 797 total computers on campus

19 Environment 2003 Bureau of Labor Statistics

20 Environment 2003 Havenstein et.al. IT Feels the Squeeze, InfoWorld, June 2003

21 Scorecard for Outsourcing Reasons for outsourcing, redux: Lack of in-house skills Access to: –Innovative services –Superior tech. solutions Cost Savings Op. efficiency/Streamlined Ops Mitigated Did not eventuate Short term A wash

22 Risks Societal impacts –Cultural dilution –Mutual suspicion/conflict –Jealousy –Servants of two masters Hostages Cost

23 Insourcing Strategy Take advantage of economic environment Negotiations and alternatives prepared in advance of contract expiration Exit strategy prepared when outsourcing –Split Academic & Admin –No group entirely outsourced –Don’t let internal resources atrophy

24 Insourcing Advantages Cost savings Unifying Managerial simplicity Operational efficiency

25 Bucking the Trend? Probability of Insourcing Currently Outsourced Functions Hassett, et al., IT Outsourcing in Higher Education, ECAR, 2002

26 Don’t Assume Hassett, et al., IT Outsourcing in Higher Education, ECAR, 2002 Likelihood of Outsourcing Additional Functions to New Vendors

27 Conclusions Outsourcing isn’t all or nothing Outsourcing can be used as a stage in service development Outsourcing requires management Outsourcing decisions depend on institutional and more general environmental issues

28 General References Compass Consulting International, Inc; Outsourcing, Is It Right For Higher Education Technology Services? html html Ellen Hassett, Peter Cunningham, Emillia Kancheva, Matt Newsome, Sara Wells; IT Outsourcing in Higher Education; ECAR Research Study;

29 Questions? Copyright Robert M. Kuhn, This work is the intellectual property of the author. Permission is granted for this material to be shared for non-commercial, educational purposes, provided that this copyright statement appears on the reproduced materials and notice is given that the copying is by permission of the author. To disseminate otherwise or to republish requires written permission from the author.


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