An Australian Government Health Organisation

About This Project

An Australian government health organisation wanted to capitalise on market capability by knowing whether and when the outsourcing of their services would deliver a better result.

The Situation

Looking to capitalise both on the emerging market capability in cloud solutions and a government policy environment that supports the consideration of external outsourcing, the health organisation commissioned us to prepare an ICT Sourcing Strategy across their Desktop Services, Service Desk, Network and Telecommunications, Software Asset Management, Applications Development and Hosting.

The Approach

In order to consider the current service delivery model for ICT and recommend alternative sourcing options to improve efficiency and reduce costs, Information Professionals Group used a Strategic Sourcing approach.

This allowed us to consider how a service should be sourced, by measuring service performance against a range of factors. These included customer satisfaction, industry standards and trends, cost benchmarks, suitability for outsourcing, strategic importance and the costs and timing of transitioning to an external source, as well as market scanning to identify available, cost effective external services.

The recommended strategy included selective outsourcing for cloud solutions, use of multi-source arrangements, in-house services and capability development in strategy, architecture and vendor management.

To support cloud services, our creation of a Decision Framework allows Queensland Health to select the most appropriate Cloud Services Model based on the situation.

A Preliminary Case for Change was developed across each Service line and along with the Sourcing Strategy, were submitted and approved by the  Executive Team and the CIO.

The Impact

In addition to projected cost savings of 10 – 12%, our strategy for outsourcing service solutions gave the organisation improved performance, by ensuring they were leveraging the right market options.

They also achieved better targeting of their strategy, gaining clarity over what they would build internally, versus what they would rely on the market to deliver.