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2009 Top State and Local Government ITO Vendors, Black Book Survey 2009 Results
The Black Book of Outsourcing, March 2010, Pages: 42
The American Recovery and Reinvestment Act hopes to stimulate the US economy through funded public sector technology projects. For the foreseeable future, the fortified overseeing of stimulus and TARP finances is shifting purchasing decisions to “Buy American”.
Outsourcing, an accepted method of maximizing effective technological initiatives, has public sector agencies and municipalities struggling to determine which managed service suppliers best satisfy oversight obligations. While procurement administrators eliminate offshore vendors from the selection process, elected officials are attempting to meet their constituents’ hopes that the stimulus provided will create new jobs.
Political condemnation of outsourcing has grown in popularity as US unemployment levels have approached 10%. The offshore industry’s instability is pushing customers to move away from offshore suppliers and towards captive centers and onshore vendors. As far as the average American is concerned, outsourcing is interchangeably identified as offshoring, and offshoring has been widely vilified as being at the root of many job losses.
“Buy American” mandates are progressing, as elected officials are responding to the critical awareness of unemployed taxpayers who demand that stimulus spend remains on home shores. Stimulus funds will not make a big dent in all long under-funded or postponed public sector capital technology projects, but they are a very encouraging step towards modernizing infrastructure operations. The scrutiny of state and local government administrators is heightening, although the bureaucratic governance of funds remains ambiguous. One outcome is certain; those outsourcing suppliers identified as “American” will dominate the purchasing trends for public sector IT.
Legislating who the contractors of shovel-ready jobs will be from stimulus-derived funds is unlikely, but the effects of the growing protectionist culture in all US government purchase decisions, whether federal, state or local, are becoming unavoidable. The stimulus initiative clearly intends to put money back into the American economy and not to lower costs offshore.
Industry: Sourcing: IT Outsourcing
Keywords: outsourcing, local, state, government, information, technology, ITO, public, sector, managed, services, suppliers, vendors, applications, development, management, enterprise, resource, planning, infrastructure, business, intelligence, data, warehousing
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