Monday, July 26, 2010

Outsourcing statistics in Higher Education

I got a link (https://spaces.internet2.edu/display/itana/EA+in+Higher+Ed+Surveys) which is a survey about Enterprise Architecture but I thought I would extract two questions about Outsourcing and Cloud Computing. In total there were 93 Higher Education institutions that answered the survey.  

12: Do you outsource activities like development, hosting of services etc.?
  • Significant Outsourcing - 4,3% (4)
  • Some Outsourcing - 32,6% (30)
  • Little Outsourcing - 57,6% (53)
  • No Outsourcing - 5,4% (5)
13: What extent are you actively pursuing "Cloud Computing" or Software-as-a-Service (SaaS) solutions?
  • We have implemented Cloud Computing or SaaS solutions - 24,2% (22)
  • We are moving to implement Cloud Computing or SaaS solutions now - 23,1% (21)
  • Cloud Computing or SaaS solutions are on our strategic plan but we haven't begun implementation - 25,3% (23)
  • We are watching and waiting to see what becomes of Cloud Computing and SaaS - 27,5% (25)
  • We are not considering Cloud Computing or SaaS - 0% (0) 
So, based on these numbers, and the hope they are fairly representative (which they might be but it is hard to tell for sure) outsourcing in general within the High Ed community is practiced, almost everyone is doing something. However most are doing little or some.

These numbers differ significantly from Cloud Computing where around 50% has moved or are moving to a cloud service like Google Apps or Microsoft Live@Edu. The most interesting difference is that every institution that answered the question is considering Cloud Computing.

This seem to indicate the obvious shift in the outsourcing market where Cloud Computing is preferred over traditional hosting services. My best guess this trend will strengthen and within a few years most if not all vendors will provide a Cloud Computing option for their software solution.

A question: How will this effect open source solutions? Is there need for options where buyers can by an Open Source solution as a Cloud Computing service? This might be something that National Research and Education Network (NRENs - SUNET in Sweden) providers can/should provide.

Saturday, July 3, 2010

Cloud Computing, Outsourcing


The Swedish government is expecting the Swedish authorities to have a Sourcing strategy. Eventually I expect it will be a mandatory requirement of the Annual Report. From what I can hear there are not many examples of full scale outsourcing (Is there any one else than University of Utrecht that has completely outsourced their IT?). More common is partial outsourcing, using different vendors, and naturally these days: Use the cloud! (or Software as a Service)

So, what are the obstacles of outsourcing in general:
  1. Competence
  2. Price
  3. Organizational issues
  4. "Political" issues
  5. Legal issues
I guess there can be more issues but these are a good starting point. So lets examine the five issues listed above.

First lets address competence, I am not always a thrilled buyer of consultants and external services. All too often the competence of the supplied consultants are too low, in short they are junior consultants sent to a costumer or they simply has no experience using the technology in a large organization. In any mature IT-organization, and especially at a university the general internal competence is rarely the biggest problem (often the opposite). Naturally there are good examples too, and I still nourish the hope.

When it comes to price it is important that outsourcing comes to the same price or less, it is hard to advocate outsourcing if the price is higher. It is naturally possible if the outsourced service is superior, however equal or slightly better is simply not good enough. In the case of Google Apps for Education or Microsoft Live@EDU the price is not the issue, since it is "free" for higher education. Thus the reason for continuing to use an internal service should be extremely good.

Organizational issues can consist of several aspects, one is the lack of experience the organization have when it comes to collaboration with external organizations, others are . The key here is likely to establish trust between the outsourcing partner and the internal organization. A part of this aspect I also add "we have tried this before and it didn't work", it is often lack of experience, or simply it was a while back and the reality has changed.

When it comes to "political" issues there can be several aspects, one is "a technical university should (must??) be able to handle X" (where X can be email or something else) or "if we outsource we loose work opportunities". And all these can be true, or false, in the end it is up to the university management to decide the policy in the sourcing strategy. This is naturally extra interesting when it comes to offshore outsourcing.

The legal issues seem to be handled easily by remembering to add country specific wording. In Sweden the handling of the Personal Data Act (Personuppgiftslagen 1998:204) and "the principle of public access to official documents" (Offentlighets- och sekretesslagen 2009:400 ) is two examples. But there are of course several other issues that needs to be addressed. In Sweden we always live with the public procurement laws.

This is likely the first post about outsourcing with the conclusion that outsourcing is possible and that most universities (it seems) is not very large buyers of outsourced services. This can or must change in the future.