WV8 is a large not for profit (NFP) public sector organisation responsible for organising the operation of publicly financed schools within its region. WV8 receives its income solely from government grants but, because of funding cuts, is under pressure to maintain existing services whilst operating more cost effectively. Recently, a government spokesperson publicly criticised public sector organisations claiming that they are expensive, lack skills found in the private sector, such as marketing and business acumen, and have a lack of understanding of the customers they are meant to serve.

Discuss the issues associated with a total outsourcing of CIS for WV8.

Relative attractiveness of alternative means of provision

Currently CIS services are given centrally and the policy review team is obviously looking to both improve the service and overcome the difficulties that WV8 faces. Centralised provision by a wholly outsourced CIS function is apparently one of the various options being discussed. Such a move would include a total outsourcing of all aspects of IT including system development, maintenance, training, etc., to a one supplier. Before WV8 decides to outsource the function other alternatives should be carefully considered including an improved central service or decentralisation. If the decision is to completely outsource the CIS function to a single provider, there will be finality to the decision. The contract would normally be for 3 to 5 years and after this it would be very complex for WV8 to bring provision back in-house.