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A Strategic Guide with insight from THE CENTER FOR DIGITAL GOVERNMENT

What Functions Should Not Be Outsourced

Not all IT functions should be outsourced. Early adopters of outsourcing indicate that certain functions need to remain in house to maintain control of the knowledge, such as project management and business knowledge.

Project management is a crucial operational function that evaluates risk, change manage- ment issues and schedules that drive the cost and success of projects. The government agency needs to be in control to ensure end users are satisfied and results are achieved.

Business knowledge needs to remain in house as well. Business knowledge includes strategic planning, architecture and standards. Allowing the vendor to hold this information leaves the government agency vulnerable to not being able to manage the IT operations in the future because the knowledge goes with the vendor.

The county of San Diego uses its County Technology Office (CTO) to manage the strategic planning of IT with the individual departments. The CTO is also responsible for managing the contractor performance. Since all IT services have been outsourced in San Diego, the county utilizes the project manage- ment office concept to manage large develop- mental projects with the vendor teams per- forming the work.

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