San Diego OKs $667M outsourcing deal


Moore said the new contract includes benchmarking changes that will allow for better price comparisons. For instance, all costs associated with a desktop, such as networking and security, were previously bundled into one price, which made it difficult to compare prices. Those costs are now being split up.

Moore said the contract will also bring about changes that will reduce costs by increasing productivity, such as introducing mobile systems that don't require workers to return to the office to process forms, improved integration of permitting processes and a better property-tax system, which could reduce head count.

"All of our technology initiatives are driven by business needs," said Moore, adding that about 80 percent of the county's costs involve the labor needed to deliver services. Having a "profound impact" on those costs will mean delivering an IT system that reduces manpower, he said.

More and more local and state governments may soon make similar outsourcing moves, if Reston, Va., consultancy Input is right about its IT outsourcing market forecast.

Input expects state and local spending on IT outsourcing to grow from $10 billion in 2005 to $18 billion by 2010, with a compound annual growth rate of 12 percent.