Public sector could save 20% on telecoms and network sourcing

A vast majority of all telecoms and sourcing projects are not as efficient as they could be, according to a study conducted by Forrester Consulting. As a result, the survey concludes, 'the public sector could potentially save up to 20% on each contract.'

The independent study surveyed 81 multinational corporations from 12 countries and a variety of industries, including the public sector. The findings quantify how adoption of best practice in telecoms sourcing can result in increased efficiencies, reduced costs and improved service levels.

The key findings, which are a stark warning to decision-makers within the public sector, include:

Staff shortcuts
- While CIOs are spending up to 20% of IT budgets on telecom services, they are committing well under one fifth of team time to managing their telecom strategy, sourcing and governance, resulting in financial loss and reduced quality of service from telecom service providers

Short-sighted strategy
- While nearly three quarters of respondents (74%) had considered their total cost of ownership and current contracts in detail, only half that number felt they had thoroughly defined their telecoms sourcing strategy, demonstrating a lack of consistency

- At the end of a major sourcing project, one in five of respondents felt they were not satisfied that they had met the objectives set out in the original business case for the investment

Harry McDermott, CEO at telecommunications and network sourcing specialists Hudson & Yorke, commented: 'The UK Public Sector is under considerable pressure to both reduce cost and demonstrate that ICT projects can be delivered on time and within budget. CIOs are increasingly expected to deliver more services and improved quality at less cost. There is clearly a significant discrepancy between what large organisations hope to achieve with a major telecoms sourcing project, and the reality of what is currently being delivered with limited experience and resources.'

In response to the findings, Hudson & Yorke recommended CIOs working in the public sector adopt four key best practices that will enable organisations in the public sector to reduce costs whilst maximising service levels:

Planning is imperative
- CIOs must get the technical and service strategy right before starting the sourcing process. Public sector organisations should develop a long-term telecom and network strategic plan which is tied to wider IT planning. Future as well as current requirements must be considered and alternative technologies, services and methodologies evaluated

More resources required
- Many public sector organisations underestimate the time required to complete a major sourcing project. Cutting corners at any stage of the process will have a significant adverse effect on the outcome. Attention to detail, proper timeline planning and use of skilled resources are all vital

Multisourcing is a must
- Organisations within the public sector can achieve significant benefits through selective multisourcing with best-of-breed vendors. This can reduce costs, improve service quality and encourage innovation

External specialists critical
- With public sector organisations typically negotiating a major telecoms contract once every 3+ years, it is unlikely that internal teams will have the necessary experience, skills and tools to manage the process as efficiently as possible. The engagement of external specialists is key – their fees will be more than recouped due to the lower charges and better quality of service achieved

McDermott concluded, 'The Public Sector Network (PSN) is a key facet of the UK Public Sector ICT Strategy as it will underpin the G-Cloud, shared services / Systems and 'Tell us Once' initiatives to provide a simplified and standardised approach to ICT which will ensure public sector services are accessible and available to all. As such, it is essential that the telecoms infrastructure underpinning the PSN is optimised.'

'As organisations plan their IT projects for 2010 and beyond, CIOs need to change the way they approach, plan and source their telecoms in a disciplined and methodical way – looking beyond their existing sourcing models – whilst dedicating the right skills and adequate time to projects. With attention to detail and best practice, the results will follow.'