A net gain from outsourcing?

 

Connecting state and local government leaders

The Homeland Security and Interior departments plan to use Networx for the switch to managed network services.

Scott Charbo knows the future of his Homeland Security Department backbone. And the future is now'well, as soon as the Networx governmentwide acquisition contract is awarded and ready for agencies to use.The DHS CIO said his agency is close to completing OneNet'a consolidation of six WANs. But he is waiting for the General Services Administration to award the two-part, $20 billion Networx contract in March and May so DHS can finish the job.'OneNet is almost up,' he said after a conference sponsored by the Armed Forces Communications and Electronics Association's Bethesda, Md., chapter. 'At least 40 percent of the circuits have migrated. We still have to move the Coast Guard and parts of the Transportation Security Administration.'Charbo, like many other CIOs and network administrators, is seriously considering how much of his network can be outsourced to a managed-services provider'likely through Networx'and how much will be addressed by the IT Infrastructure Line of Business initiative. 'This is the right model and where everyone should go,' Charbo said.Agency and vendor experts recently said that handing over some or all of your network management responsibilities to a managed-services provider could provide cost savings, improved security and improved continuity of operations planning.But experts warned that agency officials must detail their performance expectations to a specific level of granularity.'You should ask the vendor, 'How much do you love me?' ' Interior Department deputy CIO Ed Meagher said at a breakfast on managed services for COOP in Washington sponsored by Federal Computer Week Events. 'You must come to an understanding based on what you are buying that they will be there when you need them, and you're not just one of several customers in line.'Charbo, for instance, understands DHS' needs.'We are in a dual, multiprotocol, label-switching environment,' he said. 'After Networx is awarded and we are using it, we will have everyone plug into the network and go.'Meagher said Interior has similar challenges because it has so many disparate networks.'We will be one of the first ones to move to Networx,' he said. 'It gives us the opportunity to stop buying circuits. We can all save big bucks across government.'Interior currently manages its network centrally, but it is distributed to the bureaus in an ad hoc way, Meagher said.Networx is a precursor to what the Office of Management and Budget wants to do with the IT Infrastructure LOB. OMB expects agencies to save $29 billion over 10 years by consolidating their infrastructures around the LOB initiative. The GSA-led task force will focus on desktop or seat management, initially by establishing a definition and cost baseline. Other areas, including data networks and data centers, are in the works for 2008.But that doesn't mean agencies are not aggressively moving to managed networks.Agencies' spending on network and communications services was $17.2 billion in 2006, and GSA expects it to grow at a 5 percent rate over the next four years.Jim Williams, commissioner of GSA's Federal Acquisition Service, said the government's move to IP Version 6 and the agency's focus on mission-critical applications are the main reasons for this growth.Williams suggested agencies look for areas that vendors could manage, such as firewalls, intrusion detection, vulnerability scanning and securing e-mail.'Agencies should look at what the perimeter of their network is and where can attacks come into the network,' he said. 'Managed network services can be about delivering the right amount of services and helping you understand what is going on with your network and why, so you can focus your attention more quickly.'Paul Wohlleben, a partner with Grant Thornton LLP of Chicago, said agencies either are moving to managed services or acting as their own contractors and outsourcing pieces of their networks.'Managed services are growing, and the consolidation of agencies' IT infrastructures [is] a big part of this,' he said.Wohlleben and others said the most important thing to consider when moving to managed services is ensuring that you set up a quality assurance program to oversee the contract (see box).Meagher said agencies should lay out specific expectations and have severe'seven-figure'penalties if the provider doesn't meet them.

What to consider before making the move

Considering turning over management of your networks to a private-sector service provider? Five things to keep in mind:


Contract: It should be performance-based and spell out the specific outcomes. But be careful not to go overboard, said Paul Wohlleben, a partner with Grant Thornton LLP of Chicago. 'I know of one agency that had 100 metrics. That is over-management. You can't over-engineer the oversight. It is a bit of an art form.'


Penalties: Experts said they should be severe and include a seven-figure dollar amount for missing the metrics. Ed Meagher, Interior Department deputy CIO, said it has to be something other than a credit or slap on the wrist. 'It has to get the attention of senior management.'


Expectations: Jonathan Nguyen-Duy, group manager of business continuity services at Verizon Communications, said agencies should ask whether the provider is using the same services internally and will have dedicated resources for the agency.


Senior level buy-in: Meagher said managers should explain to their secretaries or deputy secretaries what would happen if the network failed and how bad the agency would look: 'Explain that this is not a short-term project, so be sure to get the commitment to complete the entire thing.' Chip Freund, director of Verizon's market development and enhanced managed services, said buy-in also must come from finance, human resources and procurement. 'If you don't get their buy-in, it will affect how you go about the daily tasks.'


Technology: Meagher said this is not really a big problem, since many Fortune 500 companies are doing it now. It is more a matter of deciding whether you will turn basic control of the entire network over to a vendor or act as a general contractor and turn over pieces of it, Wohlleben said.

'This is the right model and where everyone should go.' Scott Charbo, DHS CIO











































X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.