Outsourcing Information Technology. What You Need to Know

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Avoca School District 37 • Wilmette, IL

Outsourcing Information Technology

What You Need to Know

Avoca School District 37 Wilmette IL

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Where are you in this process?

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Avoca School Distict 37

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Avoca School Distict 37

District Mission:

• “…to maximize the unique potential of each child we serve. ”

• Located in North Shore of Chicagoland

• 699 students from PreSchool through 8th Grade

• Two buildings - Avoca West and Marie Murphy

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Long-Range Technology Plan

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Long-Range Technology Plan

2007-2010

Technology Mission:

• “…to transform and improve the way we teach and learn in a

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Long-Range Technology Plan

2007-2010

Technology Mission:

• “…to transform and improve the way we teach and learn in a

dynamic, technology rich environment. ”

Key Beliefs

• ubiquitous access

• technology at the point of instruction

• infusion of technology to enhance learning • educationally meaningful

• online communication system

• innovation grants/technology academy • technology accountability

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Technology at Avoca West

4th & 5th Grade 1:1 Laptop Program

Grades K-3 computer centers, mobile laptop carts, interactive boards Twenty station computer lab

Encore Technology

Workshops offered throughout the year Classes offered for community members

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Technology at Marie Murphy

1:1 Laptop Program Creative Technology Mini Lab

12 Station Music Lab

PowerSchool/PowerGrade

Workshops offered throughout the year Classes offered for community members

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Technology Team Structure

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Illinois School Outsourcing Statistics

• 21% Custodian/Building Maintenance Services

• 32% Food Service Operation

• 48% Transportation Services

• 56% of schools outsource all or part of one or all of the above

• 78% of Illinois students attend one of these schools

• No specific data for technology but estimation is

60% partially outsourced 30% are fully outsourced Percent of Illinois School Districts that Outsource

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Why Outsource?

• Schools are expanding their technology needs in both

educational and administrative areas

• Schools need to assess their commitment to the sustainability of

this increasing investment in technology

• Schools need a wide lense to better consider future technology

developments

• Focus needs to be on instructional mission of school district first

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Core Ideology:

In a great company,

technology is subservient to core values

,

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Why Outsource?

• An outsourced solution provides:

• easily leveraged support across many of clients simultaneously • high-level skills not needed on a daily basis

• reduced costs, defined by the salary of dedicated staff and continual

training needed, or effort to manage them as a full-time permanent position

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Why did Avoca Outsource IT?

• SWAT Team Approach

• Team of IT professionals can be too big and expensive for needs

• Rapidly accelerating technology needs

• Non-technical (Teachers) fill technology team roles

• Infrastructure is complex

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Avoca’s Transition to Outsourced IT

• Previous relationship with third party vendor

• January of 2006 Avoca begins transition

• On site assistance every day for six months

• Some team members struggle with transition

• Currently one day per week on site and as needed

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What Services Does Avoca Outsource?

• Create and maintain network documentation

• Remote network support, monitoring and server administration

• Onsite server support

• Network security – Annual scan

• Proactive network analysis and administration

• Monthly onsite visit from educational rep

• End-user help desk support of administrative and business

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What Services Does Avoca Outsource?

• IT strategy meetings

• Evaluation and advice on new technology

• Review of activity, reporting and health status

• Oversight of support plan and team

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Outsourcing Insourcing

Hardware hosted off site Hardware hosted on site

More remote, off-site assistance More hand on, on site assistance Limited points of failure Multiple points of failure

Loss of comfort of a person on site Loss of comfort of a person on site Greater connectivity needed Less connectivity needed

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Cost Comparison

In-House Network Manager

Salary/ Benefits Partial Outsourcing Technology Cooperative T-1 Lines Totals 2006-07 2007-08 2008-09 2009-10 2010-11 61,483 26,780 25,344 14,400 128,007 63,942 27,583 25,344 14,832 131,701 66,500 28,410 25,344 15,277 135,531 69,160 28,263 25,344 15,735 139,502 71,926 30,141 25,344 16,207 141,618 5 Year Average 135,672

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Cost Comparison

True Outsourcing Proposal

Base Cost Fiber Optic

Connectivity Totals 2006-07 2007-08 2008-09 2009-10 2010-11 84,000 31,260 115,260 86,250 32,198 118,718 89,116 33,164 122,280 81,789 34,159 125,948 94,543 35,183 129,726 5 Year Average 122,386

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Cost Comparison

Current Outsourcing Structure

Base Cost

Emergency Hardware T-1 Lines Totals

2006-07 2007-08 2008-09 2009-10 2010-11 67,800 5,000 20,000 14,400 107,200 67,800 5,000 20,000 14,832 107,632 67,800 5,000 30,000 15,277 118,077 69,834 5,000 10,000 15,735 100,569 71,929 5,000 10,000 16,207 103,136 5 Year Average 107,323

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Cost Comparison

Current Outsourcing Structure

Base Cost

Emergency Hardware T-1 Lines Totals

2006-07 2007-08 2008-09 2009-10 2010-11 67,800 5,000 20,000 14,400 107,200 67,800 5,000 20,000 14,832 107,632 67,800 5,000 30,000 15,277 118,077 69,834 5,000 10,000 15,735 100,569 71,929 5,000 10,000 16,207 103,136 5 Year Average 107,323 In House 5 Year Average 135,672 True Outsourcing 5 Year Average 122,386 Outsourcing 5 Year Average 107,323

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Not all about the money...

• Ethical, moral, and social implications

• All things we do at school educate students

• Education is a people and relationship business

• Continuous improvement requires continuous reevaluation of

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Questions to Ask

• Do they have trained support for your platform(s)?

• Is the service on site, remote, or a combination?

• Insource or outsource?

• References?

• Relationship with other similar schools?

• Length of contract? Is there an opt out clause?

• Is the service just IT or can they supplement the educational

program? Consulting services extra?

• How are backup systems managed? Who is ultimately responsible?

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New Illinois State Law

Regarding Outsourcing

• Evidence of liability insurance that is greater than or equal in

scope and amount to the liability insurance provided by the school board

• Employee benefits comparable to those provided to employees

of the school board

• A complete list of the number of employees who will provide

the non-instructional services, their job classifications, and the wages they are paid by the third party

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New Illinois State Law

Regarding Outsourcing

• A minimum three (3)-year cost projection for each and every

expenditure category and account for the performance of non-instructional services; such projection may not be increased if the third party’s bid is accepted

• Upon the request of the school board, composite information

including: criminal and disciplinary records, DCFS complaints and investigations, traffic violations, license revocations and other license problems

• A notarized affidavit from the president or CEO of the third

party attesting that, within the three (3) months immediately preceding the submission of its bid, each of its employees has completed a criminal background check that complies with the requirements of the School Code

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Contact Information/Q+A

District Web Site www.avoca37.org

Chris Brown