Written answers
Wednesday, 22 January 2014
Department of Jobs, Enterprise and Innovation
Outsourcing of Public Services
Lucinda Creighton (Dublin South East, Independent)
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105. To ask the Minister for Jobs, Enterprise and Innovation the total amount of outsourcing that has been achieved in his Department since the letter sent by 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]
Richard Bruton (Dublin North Central, Fine Gael)
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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. |
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