Increasingly, government is supplementing its headcount with managed services. 2022 surveys from the Center for Digital Government* provide convincing evidence of this trend, as the table below illustrates.
At the NASCIO Midyear conference in May, we asked technology leaders at the state level for some insight into how they think about managed services. Are there particular areas where managed services work particularly well? Is there work that must remain in-house? Their responses form a best practices guide of sorts that could help others craft their own staff augmentation strategies.
MIND THE GAPS
There’s no clear-cut guide to the kind of work that should be outsourced. Rather, CIOs advise a careful look at the specific circumstances to see where supplemental resources can help get government IT work done.
For some, this means getting the basics covered. Rhode Island CIO and Chief Digital Officer Brian Tardiff sees a role for managed services in his enterprise. “I look at opportunities for static services that we know aren’t going to go away, such as email services, DNS services, even network support of basic configuration and deployment of devices,” he said, adding that this approach allows state IT workers to focus on newer technologies and the successful delivery of IT projects.
In New Hampshire, CIO Denis Goulet has turned to external help for low-code/no-code development, cybersecurity and business intelligence platform expertise. But technology teams are also managing an unprecedented volume of modernization projects right now due to federal funding sources like the American Rescue Plan Act. Those, according to Goulet, present another outsourcing opportunity.
“It wouldn’t be smart to hire state workers for that because at some point that money’s going to go away,” he said. “So that’s a great use of managed services or staff augmentation at this point.”
DON'T REINVENT THE WHEEL
It doesn’t make a lot of sense to use state IT staff to build something in-house that already exists in the commercial market. “We shouldn’t try and replicate what the private sector does really well,” said Maryland CIO Katie Savage. “We wouldn’t rebuild email, for example.”
But Savage also stressed the importance of having sufficient technical talent on staff in order to be able to vet the quality of services and products that outside partners provide. Iowa CIO Matt Behrens echoed the sentiment, cautioning that government should “not outsource our brains.”
MAINTAIN CONTROL
The clear consensus on managed services is that no matter how many external resources are used, responsibility belongs in government, with the professionals who are directly accountable to the residents they serve.
When it comes to managed services, North Dakota CISO Michael Gregg summed it up like this: “You have to ensure that it’s managed properly, that you’ve minimized risk and that you’ve evaluated it fully, because if something goes wrong, you own it.”
Ultimately, the right answer is likely a well-managed combination of both. “If you outsource everything, then you’re kind of at the mercy of the commercial market,” said Virginia CIO Bob Osmond. “If you insource everything, you’re going to miss out on innovation and value from the greater ecosystem, so you really need to marry them together.”
This story originally appeared in the June issue of Government Technology magazine. Click hear to view the full digital edition online.
