it strategic sourcing at the imf: the view from the statistics department meeting on the management...
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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, 2007Patrick Hinderdael, Economic Systems, TGSCathy Wright, Statistical Information Mgt, STA
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 IMF’s 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.
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
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.
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
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
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
Main Work StreamsApplications Development and Maintenance Stream
Infrastructure and Infrastructure Support Stream
InfrastructureService
Transition
RFP 3Infrastructure
Support Services
InfrastructureSupport Services
Transition
RFP 2Infrastructure
Services
BenchmarkIMF Costs &
Effectiveness
Staffing Model and Organizational Alignment Stream
Global SourcingStaff TransitionStaff Training
and Start-up SMO & Staff Realignment
IT Staffing Model
Development
Group 3ApplicationsTransition
Group 2 ApplicationsTransition
Group 1
Applications
Transition
ADM Pilot RFP 1
AD Pilot &ADM / SDLC
Continuous IT Process Improvement StreamSourcing Management Excellence
Co-Management Processes Definition & Continuous ImprovementSourcing Governance & IT Governance Optimization
Year1 Year 3
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