Monday, May 23, 2005

IT Outsourcing: Satisfaction Isn't Guaranteed

IT Outsourcing: Satisfaction Isn't Guaranteed By eGov monitor Newsdesk

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Research highlights users less satisfied overall with outsourced IT

User satisfaction with local authority ICT services has been seen to fall significantly after outsourcing, according to new research.

The finding comes from the latest in-depth benchmarking survey by Socitm Insight which examined user perceptions of ICT services in 94 local authorities.

On average, satisfaction levels with ICT in outsourced councils were found to be 13 per cent lower than those where services were provided in-house.

Furthermore, the research also found instances where satisfaction across the board declined substantially after councils contracted out their ICT services to external suppliers.

The largest deteroriation in scores after outsourcing was in perceptions of value for money and the management of the ICT unit, the report says.

Significantly, outsourcing also impacted negatively on perceptions of the working relationships between users and service providers, as well as the speed of response and ease of contact of support staff.

However outsourced delivery did outperform in-house services in satisfaction levels for some areas, such as whether users felt that ICT facilities were up-to-date.

English councils which have done well on their Comprehensive Performance Assessment rating tend to get higher levels of user satisfaction, unless they have committed themselves to large-scale outsourcing, the research indicates.

Martin Greenwood of Socitm Insight says that with the Efficiency Review looming large, councils need to take the impact of user satisfaction in account in planning new models of service delivery.

"Efficiency gains through investment in ICT will only be made if the ICT service is credible", he said. "A large slice of that credibility must come from what users think of the service they receive and the degree to which ICT helps them deliver high-quality services."

The report, Benchmarking User Satisfaction, is available from Socitm Insight.

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