IT Strategic Sourcing by sdfwerte


									  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, 2007
  Patrick Hinderdael, Economic Systems, TGS
  Cathy Wright, Statistical Information Mgt, STA
    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

    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
    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
   Data Dissemination Standards Bulletin Board
   Economic Data Facility/Data Management for
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 Streams
Year1                                                                                                       Year 3
                     Applications Development and Maintenance Stream
  RFP 1                                     Group 1                   Group 2                      Group 3
 AD Pilot &         ADM Pilot                                         Applications                 Applications
                                           Transition                 Transition                   Transition

                        Infrastructure and Infrastructure Support Stream
   Benchmark                         RFP 2         Infrastructure                  RFP 3
  IMF Costs &                                                                                     Infrastructure
                                 Infrastructure        Service                 Infrastructure
                                                                                                 Support Services
 Effectiveness                      Services         Transition               Support Services

                     Staffing Model and Organizational Alignment Stream
 IT Staffing           Staff Training
   Model             and Start-up SMO &            Staff Transition                   Global Sourcing
Development           Staff Realignment

                          Continuous IT Process Improvement Stream
                              Sourcing Management Excellence
                 Co-Management Processes Definition & Continuous Improvement
                      Sourcing Governance & IT Governance Optimization
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
To be MSIS 2008

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