[LINK] IDC lukewarm on federal outsourcing overhaul
Thu, 18 Jan 2001 08:23:07 +1100
At 03:09 PM 17/01/01 +1000, Chirgwin, Richard wrote:
>So - good management saves more money than outsourcing. Which might suggest
>that the reason the billions of savings didn't happen was because gov.au
>computing was efficient and well-managed...
I agree with the basic premise, that the actual situation is a series of
complex and interacting variables. But I hope your tongue was firmly
planted in cheek on that last statement! It's as bad to stereotype the
good view as it is the bad. I reckon that there is always room for
improvement, but keep in mind the 80/20 rule, about 80% of the gain is
achieved from the first 20% of effort. Anything after that is regressively
advantageous. In other words, the marginal increase in whatever isn't
financially viable. In that case, sometimes 80% can be good enough as long
as it's not heart surgery or dropping bombs!
It's always easier to be an armchair critic [speaking of myself here on
this issue and not living inside that environment], but that's another
reason that outsourcing can provide some advantage for *some* things - if
you can get the outsourcer to provide this: skills transfer; and the
agency has someone to transfer the skills to! All or nothing thinking and
ALL government vs department level decision making seem to be a key lessons
to gain from this exercise. I wonder if they will be learned?
Melbourne, Victoria, Australia
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