Outsourcing of Census Operations United Nations Statistics Division

Outsourcing of Census Operations United Nations Statistics Division UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving Bangkok, Thailand, 15 -19 September 2008

Overview of Presentation q q q Reasons for outsourcing Determining if and what to outsource Outsourcing procurement process Types of outsourcing Issues to consider when outsourcing Conclusions UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving Bangkok, Thailand, 15 -19 September 2008

Why outsource q Lack of necessary technological expertise or equipment at NSO q Improve timeliness and accuracy of the data q So that NSO can concentrate on their core substantive work q Because the job to be outsourced is complex q NSO gains access to external expertise and knowledge UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving Bangkok, Thailand, 15 -19 September 2008

Determining if and what to outsource A decision on whether or not to outsource should be based on: - Defining the technical needs of the NSO in terms of expected output - Specifying the requirements for the delivery of the output in terms of timeliness, quality assurance, accuracy, confidentiality, etc - An assessment of the market vis-à-vis the NSO needs to determine if it would be feasible to undertake the outsourcing UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving Bangkok, Thailand, 15 -19 September 2008

Defining technical needs for outsourcing q NSO should clearly define the desired output or product for which outsourcing may be needed q Document should include Objectives of the project Output or outcome to be achieved Time frame UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving Bangkok, Thailand, 15 -19 September 2008

Output specifications q q q Contractor and NSO should have a shared understanding of the requirements of the contract, including objectives, expected outcomes and priorities Clear Specifications, including standards to be met, are key to ensuring you get what you want and that everyone understand what is expected Specifications should describe in detail the tasks that are the responsibility of the NSO and of the contractor Specifications should include detailed milestones with deliverables against which performance should be evaluated Specifications for the output should also address requirements for timeliness, data confidentiality and security, quality assurance UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving Bangkok, Thailand, 15 -19 September 2008

Assessment of the market q It’s important that NSO has a clear understanding of the market before embarking on outsourcing q Important for: Assessing technological possibilities for the work to be outsourced Assess potential competitors for the project Estimating cost of the outsourcing Assessing whether NSO can afford the outsourcing Helping with preparation for the tender UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving Bangkok, Thailand, 15 -19 September 2008

Outsourcing procurement process q Bidding process may take a long time q Choice of contractor should be based on a transparent competitive process q Tender process may differ by country, but need: Rules for tender including announcement with deadlines Documents on what’s being outsourced q NSO may collaborate with other government departments in order to learn from their experience in procurement UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving Bangkok, Thailand, 15 -19 September 2008

Choice of contractor q q q It’s advisable to choose a contractor with a proven record of data processing preferably in the region Contract should be awarded to those who meet the specified requirements and should not be based only on cost but on other considerations as well, including confidentiality, accuracy and timeliness It’s important to rank the criteria upon which the contractors are being assessed A grid may be constructed showing the performance of the contractors against the criteria for the assessment As part of process prospective contractors should undergo a competitive test, e. g. , having different companies scan a stack of questionnaires assessing their performance UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving Bangkok, Thailand, 15 -19 September 2008

Example of Outsourcing Schedule - France UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving Bangkok, Thailand, 15 -19 September 2008

Types of contracts and of outsourcing There are different types of contracting and of outsourcing with advantages and disadvantages n Contract types: Full contract (contractor performs all outsourced work) Mixed contract (different aspects of the work are outsourced to n n different companies) Sub-contracting (contractor contracts out some of the work to another company) While the mixed contract has the advantage of getting the best for different aspects of contracted work, it presents challenges in terms of management and also assessing responsibility for different contractors Outsourcing ranges from total outsourcing of the operation to variants of combining outsourcing components of the project and use of inhouse developed systems UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving Bangkok, Thailand, 15 -19 September 2008

Administration of the contract q It’s important to have a detailed legal document (contract) showing obligations and responsibilities of NSO and contractor q The contract should: - Specify clear lines of authority with NSO retaining management of the overall operation - Specify penalties for breach of contract on the part of NSO or contractor - However, specify the possibility of the NSO to break the contract or to delay (e. g. , if the census is delayed) and the corresponding conditions - Be flexible enough to allow amendments UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving Bangkok, Thailand, 15 -19 September 2008

Issues to consider when outsourcing n Need to plan for data processing as part of overall census planning n Need to test process n Differing objectives n NSO’s inalienable responsibility for the whole census operation including for the outsourced parts n Data confidentiality and security n Setting quality assurance standards for project n Risk management UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving Bangkok, Thailand, 15 -19 September 2008

Need for adequate planning q Planning for data processing should be part of overall census planning q Plans for data capture should take into account the census form to be used and vice versa q It may be advisable to choose a data processing contractor who will also print the census forms q Plans for training of enumerators should also take into account method of data capture to ensure proper filling in and handling of census form UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving Bangkok, Thailand, 15 -19 September 2008

Testing the system q q q q Data processing system should be tested and problems corrected Testing should cover all aspects of the process More testing is required at beginning of process to allow fine tuning of the system until the desired result is obtained Form design should be finalized early enough to be used in testing Start early as long lead time is required The pilot census is an opportunity to test the data processing infrastructure Testing of the system should be included in the contract specifications Learn from experience of others UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving Bangkok, Thailand, 15 -19 September 2008

Differing Objectives q There is likely to be a difference in objectives between NSO and contractor q Contractor is interested in more pay for less work so as to obtain a profit for their company q NSO is interested in paying less for higher quality output produced in minimum time UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving Bangkok, Thailand, 15 -19 September 2008

Data confidentiality and security q q q q Is a bigger concern with outsourcing as outside contractors handle completed questionnaire containing individual data However, whether census operations are outsourced or not, data confidentiality and security remain of outermost importance NSOs are responsible for data confidentiality in terms of both perception and reality NSOs should assure the confidentiality of the data even when data processing are outsourced The NSO should ensure that contractors have instituted strict safeguards to prevent unauthorized access to information Contractor staff should be subject to same data confidentiality rules as NSO staff and be required to sign a legal undertaking Contract should include penalties for data disclosure and misuse UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving Bangkok, Thailand, 15 -19 September 2008

Quality assurance q q q NSO is responsible for managing the quality of the census output NSO should ensure that contractor has captured data accurately and in a timely and cost-effective manner Setting of quality assurance criteria and setting up a monitoring system for data processing are important Monitoring quality assurance for data capture can be difficult if NSO and contractor do not have same set of criteria for assessment and monitoring NSO may not have enough experience and expertise to set up necessary criteria for assessment, e. g. , of error rates, and monitoring especially with technology that is new UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving Bangkok, Thailand, 15 -19 September 2008

Monitoring the outsourcing project q Ability of the NSO to manage and control outsourced work is critical to the success of the project q Ongoing monitoring is crucial to ensure continual review of achievements against originally specified milestones q Monitoring very critical when outsourced work in undertaken away from the NSO site q A system for monitoring progress should be in-built into the contract q Monitoring should also include regularly scheduled meetings q Aim for clear and open communications with contractor UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving Bangkok, Thailand, 15 -19 September 2008

Risk management q Outsourcing does not transfer risks from NSO to contractor q Outsourcing may bring new risks q NSO is to blame for all problems and so assumes all risks q NSO should develop a risk management strategy for the outsourced work UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving Bangkok, Thailand, 15 -19 September 2008

Conclusions q Decision to outsource depends on assessment of situation q Need for clear specifications of the contract q Importance of testing the system q NSO’s role in management and monitoring of outsourcing q Much to learn from experience of others UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving Bangkok, Thailand, 15 -19 September 2008

Thank you. UNSD-UNESCAP Regional Workshop on Census Data Processing: Contemporary technologies for data capture, methodology and practice of data editing, documentation and archiving Bangkok, Thailand, 15 -19 September 2008