1. Outsourcing of Census Operations United Nations Statistics Division
UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving
Bangkok, Thailand, September 2008

2. Overview of Presentation
Reasons for outsourcing
Determining if and what to outsource
Outsourcing procurement process
Types of outsourcing
Issues to consider when outsourcing
Conclusions
UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving
Bangkok, Thailand, September 2008

3. Bangkok, Thailand, 15-19 September 2008
Why outsource
Lack of necessary technological expertise or equipment at NSO
Improve timeliness and accuracy of the data
So that NSO can concentrate on their core substantive work
Because the job to be outsourced is complex
NSO gains access to external expertise and knowledge
UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving
Bangkok, Thailand, September 2008

4. Determining if and what to outsource
A decision on whether or not to outsource should be based on:
Defining the technical needs of the NSO in terms of expected output
Specifying the requirements for the delivery of the output in terms of timeliness, quality assurance, accuracy, confidentiality, etc
An assessment of the market vis-à-vis the NSO needs to determine if it would be feasible to undertake the outsourcing
UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving
Bangkok, Thailand, September 2008

5. Defining technical needs for outsourcing
NSO should clearly define the desired output or product for which outsourcing may be needed
Document should include
Objectives of the project
Output or outcome to be achieved
Time frame
UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving
Bangkok, Thailand, September 2008

6. Output specifications
Contractor and NSO should have a shared understanding of the requirements of the contract, including objectives, expected outcomes and priorities
Clear Specifications, including standards to be met, are key to ensuring you get what you want and that everyone understand what is expected
Specifications should describe in detail the tasks that are the responsibility of the NSO and of the contractor
Specifications should include detailed milestones with deliverables against which performance should be evaluated
Specifications for the output should also address requirements for timeliness, data confidentiality and security, quality assurance
UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving
Bangkok, Thailand, September 2008

7. Assessment of the market
It’s important that NSO has a clear understanding of the market before embarking on outsourcing
Important for:
Assessing technological possibilities for the work to be outsourced
Assess potential competitors for the project
Estimating cost of the outsourcing
Assessing whether NSO can afford the outsourcing
Helping with preparation for the tender
UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving
Bangkok, Thailand, September 2008

8. Outsourcing procurement process
Bidding process may take a long time
Choice of contractor should be based on a transparent competitive process
Tender process may differ by country, but need:
Rules for tender including announcement with deadlines
Documents on what’s being outsourced
NSO may collaborate with other government departments in order to learn from their experience in procurement
UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving
Bangkok, Thailand, September 2008 8

9. Bangkok, Thailand, 15-19 September 2008
Choice of contractor
It’s advisable to choose a contractor with a proven record of data processing preferably in the region
Contract should be awarded to those who meet the specified requirements and should not be based only on cost but on other considerations as well, including confidentiality, accuracy and timeliness
It’s important to rank the criteria upon which the contractors are being assessed
A grid may be constructed showing the performance of the contractors against the criteria for the assessment
As part of process prospective contractors should undergo a competitive test, e.g., having different companies scan a stack of questionnaires assessing their performance
UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving
Bangkok, Thailand, September 2008 9

10. Example of Outsourcing Schedule - France
UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving
Bangkok, Thailand, September 2008

11. Types of contracts and of outsourcing
There are different types of contracting and of outsourcing with advantages and disadvantages
Contract types:
Full contract (contractor performs all outsourced work)
Mixed contract (different aspects of the work are outsourced to different companies)
Sub-contracting (contractor contracts out some of the work to another company)
While the mixed contract has the advantage of getting the best for different aspects of contracted work, it presents challenges in terms of management and also assessing responsibility for different contractors
Outsourcing ranges from total outsourcing of the operation to variants of combining outsourcing components of the project and use of in-house developed systems
UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving
Bangkok, Thailand, September 2008

12. Administration of the contract
It’s important to have a detailed legal document (contract) showing obligations and responsibilities of NSO and contractor
The contract should:
Specify clear lines of authority with NSO retaining management of the overall operation
Specify penalties for breach of contract on the part of NSO or contractor
However, specify the possibility of the NSO to break the contract or to delay (e.g., if the census is delayed) and the corresponding conditions
Be flexible enough to allow amendments
UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving
Bangkok, Thailand, September 2008

13. Issues to consider when outsourcing
Need to plan for data processing as part of overall census planning
Need to test process
Differing objectives
NSO’s inalienable responsibility for the whole census operation including for the outsourced parts
Data confidentiality and security
Setting quality assurance standards for project
Risk management
UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving
Bangkok, Thailand, September 2008 13

14. Need for adequate planning
Planning for data processing should be part of overall census planning
Plans for data capture should take into account the census form to be used and vice versa
It may be advisable to choose a data processing contractor who will also print the census forms
Plans for training of enumerators should also take into account method of data capture to ensure proper filling in and handling of census form
UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving
Bangkok, Thailand, September 2008 14

15. Bangkok, Thailand, 15-19 September 2008
Testing the system
Data processing system should be tested and problems corrected
Testing should cover all aspects of the process
More testing is required at beginning of process to allow fine tuning of the system until the desired result is obtained
Form design should be finalized early enough to be used in testing
Start early as long lead time is required
The pilot census is an opportunity to test the data processing infrastructure
Testing of the system should be included in the contract specifications
Learn from experience of others
UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving
Bangkok, Thailand, September 2008

16. Bangkok, Thailand, 15-19 September 2008
Differing Objectives
There is likely to be a difference in objectives between NSO and contractor
Contractor is interested in more pay for less work so as to obtain a profit for their company
NSO is interested in paying less for higher quality output produced in minimum time
UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving
Bangkok, Thailand, September 2008

17. Data confidentiality and security
Is a bigger concern with outsourcing as outside contractors handle completed questionnaire containing individual data
However, whether census operations are outsourced or not, data confidentiality and security remain of outermost importance
NSOs are responsible for data confidentiality in terms of both perception and reality
NSOs should assure the confidentiality of the data even when data processing are outsourced
The NSO should ensure that contractors have instituted strict safeguards to prevent unauthorized access to information
Contractor staff should be subject to same data confidentiality rules as NSO staff and be required to sign a legal undertaking
Contract should include penalties for data disclosure and misuse
UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving
Bangkok, Thailand, September 2008

18. Bangkok, Thailand, 15-19 September 2008
Quality assurance
NSO is responsible for managing the quality of the census output
NSO should ensure that contractor has captured data accurately and in a timely and cost-effective manner
Setting of quality assurance criteria and setting up a monitoring system for data processing are important
Monitoring quality assurance for data capture can be difficult if NSO and contractor do not have same set of criteria for assessment and monitoring
NSO may not have enough experience and expertise to set up necessary criteria for assessment, e.g., of error rates, and monitoring especially with technology that is new
UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving
Bangkok, Thailand, September 2008

19. Monitoring the outsourcing project
Ability of the NSO to manage and control outsourced work is critical to the success of the project
Ongoing monitoring is crucial to ensure continual review of achievements against originally specified milestones
Monitoring very critical when outsourced work in undertaken away from the NSO site
A system for monitoring progress should be in-built into the contract
Monitoring should also include regularly scheduled meetings
Aim for clear and open communications with contractor
UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving
Bangkok, Thailand, September 2008

20. Bangkok, Thailand, 15-19 September 2008
Risk management
Outsourcing does not transfer risks from NSO to contractor
Outsourcing may bring new risks
NSO is to blame for all problems and so assumes all risks
NSO should develop a risk management strategy for the outsourced work
UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving
Bangkok, Thailand, September 2008

21. Bangkok, Thailand, 15-19 September 2008
Conclusions
Decision to outsource depends on assessment of situation
Need for clear specifications of the contract
Importance of testing the system
NSO’s role in management and monitoring of outsourcing
Much to learn from experience of others
UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving
Bangkok, Thailand, September 2008

22. Bangkok, Thailand, 15-19 September 2008
Thank you.
UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving
Bangkok, Thailand, September 2008