1. Shelagh Hohm AIS Director Paul Sorenson Vice Provost Information Technology CANHEIT | On the EDGE | June 15-18, 2008 | University of Calgary Outsourcing Administrative Information Systems: Jumping the Chasm

2. “There’s no debate about it. Outsourcing is difficult. The failure rate of outsourcing relationships remains high. Depending on whom you ask, it can be anywhere from 40 to 70 percent. At the heart of the problem is the inherent conflict of interest in any outsourcing arrangement. The client is seeking to get better service, often at lower costs, than it would get by doing the work themselves. The vendor, however, wants to make a profit. That tension must be managed closely in order to ensure a successful outcome for both client and vendor.” Lalit Sachdeva from CIO (www.cio.com) Why is outsourcing so hard?

3. What’s with the Chasm? tri0059 Image Zoo Royalty Free Photograph In-House control “unique” needs retained expertise cost effective > project mngtIn-House control “unique” needs retained expertise cost effective > project mngt Outsourcing lowering costs lowering costs cost control cost control strategic - redirecting energies and focusing competencies strategic - redirecting energies and focusing competencies efficiencies in labor, capital, IT, resources efficiencies in labor, capital, IT, resources >contract mngt >contract mngtOutsourcing lowering costs lowering costs cost control cost control strategic - redirecting energies and focusing competencies strategic - redirecting energies and focusing competencies efficiencies in labor, capital, IT, resources efficiencies in labor, capital, IT, resources >contract mngt >contract mngt Academia cultural conservative not profit motivatedAcademia cultural conservative not profit motivated Valley of Despair

4. Production Services Governance Structure Development Services Global Resources Lessons Learned Q & A Agenda

5. University of Alberta PeopleSoft Environment

6. Production Services IBM Global Services 2 nd five year term until June 30, 2010 -Application Management -Hardware Acquisition and Support -Help Desk Services -Change Order Requests -Security Management -PeopleSoft patches and fixes -Performance Tuning -Database Administration -Peoplesoft upgrades

7. AIS Direction, Strategy, Priorities Academic Objectives LEGEND AIS Steering Committee Executive Vice Provost IT & Vice President F&A AIS Figure 2.1 – Administrative Systems Decision Making Structure Strategic Arm – Administrative Systems Owners Tactical Arm – Administrative Systems Providers n x Development Project Teams Provost AIS Steering Committee HR COR Working Group User Working Groups A relationship between groups or individuals that involves fundamental elements of monitoring and control A relationship between groups or individuals that involves less complex exchanges of information Student COR Working Group Finance COR Working Groups NDS Development IBM Production Joint Operations Group AIS Central Units Central Units CustomerProvider n x Ad Hoc Teams & Committees (e.g. Upgrade) Deans Council Faculties General Faculties Council AIS Security Group AIS Security Group Students

8. Committee Structure Production Committee (JOG) Development Committees (AISSC & Exec) Change Order Committees Security Committee Project Based Steering Committees

9. AISSC & AISSC Executive Development Committees Annual Development Planning Process Establish priorities for new development Act as escalation point for project issues Provide broad based input into project decisions

10. Development Services Preferred development vendors Sierra Systems IBM Global Services Ciber Confirmed Annual Development Budget New Development Methodology –Standard RFP template –Quality Measures –Standard Reporting –University Provided Project Steward –Vendor Project Manager IBM manages development environments

11. Development Plan Rank Development ProjectScoreArea 1PeopleSoft Portal88All 2 Asset Management – Phase 2 87FS 2Workflow: AP Workflow, General Ledger, External Billing, Requisitions87FS 2Prerequisite Checking87SA 5 Web T4 ’ s 85HR 6Instructor Self-Service81SA 7Data Warehouse (EPM Financials)77FS 8Internal Billing (inter department)73FS 9Academic Advisement71SA 9Employee Relations71HR 11Gradebook70SA 12Cohort68SA 13Candidate Gateway (eRecruit)66HR 14Absence Management65HR 15Non Credit Programs Implemented in Oasis63SA 16Course Scheduling Enhancements in BearTracks56SA 17 CRM – Customer Relationship Management 49SA 18Further Implementation of HR/Pay Self Service Functionality46HR

12. Global Resources University Upgrade to Campus Solutions/Human Capital Management 9.0 Visit to India: January 2008 Contractual considerations –Ensure responsibilities are clearly identified in contract –Prepare a detailed Privacy Impact Assessment –Ensure you have a Data Classification plan and implement that plan –Audit requirements – SAS70 –Include audit, privacy and legal advisors in contract, security policy and decision making

13. Global Resources Experiences –Landed resource from India as Team Lead –Time differences –Mainly technical resources –Requirements need to be very clear –Tasks take longer but quality high and rates are better –Overall experience still being evaluated...

14. Outsourcing Lessons Learned Contract Management is critical Retain business analysts and ensure staff are highly skilled University needs to be responsible for vision and planning Single vendor for new development did not work Ensure responsibilities are clearly identified in contract Do not outsource all responsibility for security & training Project management and change management are key to successful development projects Hardware, firewall, system administration, hardware administration outsourcing are most effective

15. “Backsourcing” OutsourceOutsourceIn-HouseIn-House The key has been running in-house IT like an outsourcer. "[We’re] a very lean organization capable of achieving the best value for our money,” Cecilia Claudio took over as CIO of Anthem Blue Cross and Blue Shield in 1996 [www.cio.com] Valley of Despair

16. Questions & Answers