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Outsourcing without losing jobs March 29, 2011

Posted by Mark Hillary in Government, IT Services, Outsourcing.
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I had the opportunity to spend some time recently with the Chief Executive of a county council. We were talking about the looming spending cuts and what he might be able to achieve through the rationalisation of infrastructure, such as contact centres.

He explained to me that he had eleven premises with call centres handling enquiries from the public. Eleven!

I asked him why he doesn’t just rationalise them all into a single customer service centre. It would mean less property to manage, and without all that real estate overhead he could reduce headcount too.

He explained to me that in his part of the UK, the public sector employs around half of all employed adults. He not only has a mandate to try keeping costs down, but as one of the biggest employers in the region, he has to think of the social consequences of suddenly automating processes and casting hundreds into unemployment.

This is a very peculiar problem that most business leaders fortunately don’t have to face, but even the council leader could be exploring his data centre requirements without an immense impact on jobs.

Every process and system used today requires storage. Those banks of servers used to be lined up in the basement of every office until it became more efficient to use communications lines to large data centres, where the servers could be maintained more efficiently.

Storage is a homogenous kind of product. Apart from differing security considerations, there is not much else that is required other than the ability to store data safely, and to have backup and business continuity plans in place, just in case things go wrong.

Ultimately storage will go to the cloud. The players offering us space to store our company data will be Amazon and Google, but in the meantime there are many organisations – such as the county council – where individual departments still manage their own servers and storage.

Ensuring the enterprise uses a shared storage strategy through a rationalised data centre is one step towards reducing cost and running a smoother operation, but it also gets people ready for the future, a future where storage is on tap.

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