Overview of Outsourcing in the Public Sector in Ireland by Oisin Byrne Managing Director of ireach

1. TIF Managed Services in the
Public and Private Sectors 2005
Oisín Byrne
Managing Director
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2. IT Spend by Industry Vertical
Sem i-State €266 Financial Services
€502
Services €141
Retail & Wholesale
€241
Manaufacturing
Healthcare €100
€424
Com m unications
€158
Governm ent €383
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3. IT Service Spend in 2005
2004 2005
60
SW Maint
55
85
HW Maint
81
161
Managed Services
101
239
Outsourcing
200
200
AD/SI
220
170
Consulting/Advisory
180
0 50 100 150 200 250 300
Spend in € millions
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4. Right Sourcing: Many offerings
D/R
BPO
Printing
AD
Outsourcing
Payment
Processing
Shared Services Hosting
Claims
Processing
Call Center
Outsourcing IT Outsourcing
Payroll Help Desks
Processing
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5. Market Drivers
Resistance to Outsourcing
•
People Issues
•
Scale of Operation
•
Market Confusion
•
Over focus on Costs
•
Length of Deals
•
Rigid SLAs based on IT not Business
•
Market needs more creative offerings
•
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6. Drivers in Public Sector
• De-Centralisation
– Separate People, Process and Systems
• Shared Services
– Cluster of Departments
• Right Sourcing
– Mix or blend of offerings
• 2006 to see lots of activity
– Small Managed Service Deals
– Large Managed Service Tenders
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7. Drivers in Private Sector
• Outsourcing Backlash
• Lack of understanding of Big Picture
• Progressive or Selective outsourcing
– AD Outsourcing
– APP Outsourcing
– Call Centre Outsourcing
– Desktop Outsourcing
– Network Outsourcing
– Security Outsourcing
– Website Hosting
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8. oisin.byrne@ireach.ie
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