Outsourcing of Public Services

Wednesday, 22 January 2014

Questions (105)

Lucinda Creighton

Question:

105. Deputy Lucinda Creighton asked the Minister for Jobs, Enterprise and Innovation the total amount of outsourcing that has been achieved, in his Department, since a letter was sent by the Secretary General of the Department of Public Expenditure and Reform in March 2012; the names of the outsourcing companies that have been involved; the total savings achieved; and if he will make a statement on the matter. [3303/14]

View answer

Written answers

Minister for Jobs, Enterprise and Innovation

No additional outsourcing has been undertaken by my Department since March 2012. The following tables detail the total amount of existing contracts that have been in operation on behalf of my Department and its Offices since 5th March 2012:

Table 1: Outsourced Services for Department of Jobs Enterprise and Innovation

Service outsourced	Name of outsourcing company	Estimated Savings achieved from Outsourcing Function
Data Tagging some 24,800 determinations/decisions of the Workplace Relations Bodies, for publication on the new Workplace Relations Website.	Sentry Consulting Ltd. and T/A Datascan	It was decided to outsource the project to ensure the timely completion of the work in order to facilitate the launch of the new website and, a saving of €3,324.67 was made, in comparison to the estimated cost of the project being completed in-house.
ICT System Supports	Blue Wave Technology, Core Internarional, Core International, Ergo Services, Fujitsu, Microsoft Ireland, Sabeo Technologies, System Dynamics, Version 1, Zinopy Security Limited, Sword SA, Advance Systems ((RL), Capita 1B Solution, Client Solutions, Integrity Solutions, IP Options' Maule Systems, Maxima Ireland, MJ Flood, Plannet21 Communications, Qualcom Systems Ltd., Quest Computing, Sureskills, (other companies providing minor services)	Savings not quantifiable. Because of the complexity and diversity of systems supported, in-house skills are not available. These services have been outsourced for a considerable period.
Hosting Services	Local Government Management Agency	Savings not quantifiable; service has been outsourced for some time.
ICT Helpdesk Services	BT Communications Ireland, Hibernia Services	Savings not quantifiable; service has been outsourced for some time.
ICT Security Support Services	Rits, Ward Solutions	Savings not quantifiable. In-house skills and resources not available. These services have been outsourced for a considerable period.
Media monitoring services	Media World Ltd.	Savings not quantifiable. These services have been outsourced for a considerable period.
Outsourced payroll services	Enterprise Ireland	Savings not quantifiable; service has been outsourced for some time.
Specialised ICT Training	New Horizons Olas Software	Savings not quantifiable. In-house skills not available.
Website design & development supports	Arekibo Communications, Stratathree Limited, pTOOLS Software	Savings not quantifiable. In-house skills not available.
Telephony Services	Eircom Ltd	This contract is primarily based on call volume and customer service considerations, and not on grounds of financial savings.

In relation to ICT outsourcing, it is not possible to quantify the levels of savings over in house activity, as the complexity and diversity of systems supported would not permit an in house delivery of many of these services. Consequently, these services have been outsourced for a considerable period of time.

Table 2: Outsourced services for the Companies Registration Office (CRO)

Service outsourced	Name of outsourcing company	Estimated Savings achieved from Outsourcing Function
Data Entry	RR Donnelley Global Document Solutions Ltd	CRO has estimated it would take several clerical officers working full-time to key up the paper annual returns it receives each year. Salaries and pension liabilities would exceed the contract price.
Printing and Postage	DC Kavanagh Ltd	Again, several clerical officers would be required to print, fold, pack envelopes and frank the thousands of letters issued by CRO. Outsourcing is less expensive than direct staff overheads for this activity.
File Storage	Kefron/ Filestores	The CRO occupies premium city centre office space in Dublin 1 as it serves as a public office for presenters. Usage of this premium space for large-scale file storage would not be economical and file storage specialists located in business parks on the fringes of the city can offer more favourable rates.
Cleaning	Derrycourt Ltd	Direct staffing in salaries and pension liabilities would be more expensive in this case.
System Development	ERS Ireland Ltd	The valuable expertise we procure through this contract could not be derived in-house. The system developers engaged are registry experts with contracts across Europe, Asia and North America.
Courier service from Carlow to Dublin	28 Transport	Direct staffing in salaries and pension liabilities would be more expensive in this case.
Cash in transit	CP Omada/Senaca CMS	Cash must be transported by secure licensed providers and therefore this function must be outsourced.

Table 3: Outsourced services for Office of the Director of Corporate Enforcement (ODCE)

Service outsourced	Name of outsourcing company	Estimated Savings achieved from Outsourcing Function
Static Security Services	Senaca Group	This service has always been outsourced as there is no Civil Service grade to provide for 24-hour security for the building.
Cleaning within premises	EcoGroup Services	ODCE responsible for 44% as the Office occupies 44% of the building. (new contract February 2014 AFM Ireland Ltd.). Direct staffing in salaries insurance and pension liabilities would be more expensive than outsourcing.
Waste Removal	Greenstar	ODCE responsible for 44% as the Office occupies 44% of the building. Savings not quantifiable.
Confidential Shredding/Recycling within premises	Pulp	ODCE responsible for 44% as the Office occupies 44% of the building. Savings not quantifiable.
Design for publications	Artefact, Clever Cat, Tanika Design Ltd	Savings not quantifiable as the skills are not available in-house.
Legal Services various solicitors, various summons servers	Various barristers, Rochford Brady Law Searchers	Barristers have reduced fees by 8% as requested. Savings on Law Search service not quantifiable but outsourcing leaves in-house solicitors free to perform work of higher value for the Office.
IT Support	DJEI, CRO, Sureskills Ltd, Arekibo, Inventise, Espion	Savings not quantifiable. No in-house skills available.
File Storage	Superior Storage t/a DFS	Savings not quantifiable. Offsite storage is more economical than using city centre space for filing paper.
Legal Costs Accounting	Cyril O'Neill LCA, Peter Fitzpatrick LCA	Direct savings not quantifiable. However use of this service has reduced the Office’s liability for costs in certain cases. No in-house skills available.
Translations Services	DCULS, Wordperfect Translation, Focal Factory, Eurotext Translations	Outsourcing has enabled the Office to fulfil its obligations under the Official Languages Act without impacting other functions. Savings not quantifiable but these services are not outsourced for smaller texts which are done in-house.
Staff Training	ACCA, CAI, Central Law Training, Garda College Templemore, Innovative Learning Solutions, Public Affairs Ireland, Law Society Professional Training, OMT Consultancy Ltd., The Company Shop Ltd., Honourable Society of King's Inn, Blue Wave Technology, Dublin Solicitors Bar Association, Law Society of Ireland, Trinity College Dublin, Phoenix Safety Services Ltd.	Savings not quantifiable. A minimum amount of Continuous Professional Development is required for professional staff.
Accountancy Consultancy	PriceWaterhouseCoopers	While the Office had two Accountants on staff during this time it would not be feasible to engage them both on a long-term project such as the one in question as they had other defined roles in the Office.

Table 4: Outsourced services for Patents Office

Service outsourced	Name of outsourcing company	Estimated Savings achieved from Outsourcing Function
Internal contract cleaning	Grosvenor Cleaning Services	Direct staffing in salaries and pension liabilities would be more expensive in this case.
Window cleaning	Murphy Contract Cleaners	Direct staffing in salaries and pension liabilities would be more expensive in this case.
Office security	Mountainglow Ltd. t/a Sentry Security	Costs of directly recruiting and paying staff and insurance would be greater than outsourcing in this case.