NC to outsource IT management

For good or ill, big changes are on the way:

Faced with a looming, $3 billion budget deficit, North Carolina is eyeing a major shakeup of its tech operations that could see the state outsource the bulk of its IT work to the private sector while consolidating other operations internally.

"The Office of Information Technology Services (ITS) issued a Request for Information to seek input and ideas from the vendor community for improving the delivery of IT in state government," Perdue said in the memo, dated July 21st.

I wonder how this will impact FOIA requests?

The reason I ask is because these tech firms are notorious for relying on systems that curb data load by encouraging deletion (or automating it), especially in the area of message traffic.

Through the RFI, North Carolina is looking to hire a firm that can help it identify outsourcers that could take over operations from internal IT units at state agencies, and also provide a blueprint for achieving additional savings and efficiencies. "The goal is to move aggressively toward an improved IT infrastructure that will lower costs, reduce complexity and redundancy, improve the utilization of resources and increase security," Perdue wrote in her memo.

Under the RFI's rules, the firm that wins the consulting gig will be disqualified for bidding on the outsourcing contracts that follow.

This should be interesting...


Two threads

First is a consulting contract to help the state decide what to outsource, how to structure contracts, and who the potential vendors are. That type of contract is chickenfeed to big outsourcers.

Then comes the real prize ... outsourcing applications management services (AMS).

The only way this works is to find a vendor whose costs are significantly lower than what the state can do for itself ... and then lock in a three to five year contract with that vendor for ongoing management and maintenance.

The fancy phrase for this kind of cost-cutting practice is "labor arbitrage." The plain English version? This work is going overseas where labor is cheap.