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Montgomery County Organizational Reform Commission In the IT sector, outsourcing - or privatization - very often results in reduced costs and improved service levels. The key to improved service levels is generally in the establishment of rigorous and measurable Service Level Agreements (SLAs). We believe that information technology, more than any other area related to government operations, lends itself to privatization. Technologies are constantly changing and governments often do not have the in-house expertise to keep up with rapid changes in needed skill sets. The "FUD" rule often prevails "fear, uncertainty and doubt." The private sector, unhampered by this and focused on the bottom line for its consumers, moves with greater agility, resulting often in a disconnect between the way the government adopts new technologies and how the commercial world wields the power of innovation. Without question, the private sector has the competitive edge in information technology. Looming over any discussion of IT privatization is the apparent lack of central leadership in the County on IT decision-making. The County government and the other tax-supported agencies do collaborate in several ways when it comes to discussing strategies and options. Amazingly, in our view, there is no one IT leader with the authority and responsibility to make final IT decisions for all tax-supported agencies. Recently, the federal government announced that it plans to ask Congressional appropriators to grant CIOs authority over all back-office IT services, such as e-mail, content management systems and web infrastructure. As noted above, we believe that Montgomery County should do the same, with authority vested in a single CIO. Another area with bearing on both groups is the establishment of a working capital fund, or revolving fund, to manage common administrative services. This would allow for a pooling of funds, thus making privatization more effective due to savings gained through economies of scale. "Seat Management" The practice of "seat management," with regard to the use of computer workstations, was pioneered by the federal government to upgrade and standardize desktop computing services, while controlling IT expenses. Seat management covers three functions: PC replacement, maintenance, and Help Desk support. It is a fixed monthly fee per user, or "per seat," for equipment and/or services the government chooses to outsource. Outsourcing this function is not new to County government. It has been in place since 1998 and now covers all of its 6,000-plus PC users. The program is centralized and has given the County government greater buying power, thereby lowering the cost oftechnology purchases. The total savings to County government, through outsourcing seat management (excluding asset ownership) from 2000 to 2010, was $27 million - an average of $2.5 million a year. The County chose to retain the assets, but outsource its services. The savings on Help Desk support services alone was $22.5 million. In the absence of a contracted seat management program, the County would have hired staff to provide this service internally. The presence of the Help Desk program has greatly improved employee productivity, due to dramatic decreases in down time and simultaneous improvements in first-call resolution rates. The County's Seat Management Program provides additional services and efficiencies for - 52PDF Image | Montgomery County Organizational Reform
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