November 2001 — Editorial
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Administrative Challenges
Increased Interest in Outsourcing
The outsourcing marketplace is maturing, especially for application services. Flexibility, speed and cost savings are seen as primary advantages. Businesses are engaged in off-loading tedious functions to focus on "core" responsibilities and in-house competencies; especially now, since U.S. companies plan for 770,000 layoffs this year, more than triple the approximately 225,000 cuts during the same period in 2000. CFO Magazine’s October 2001 issue stated that a majority of companies already engage in some form of outsourcing. Their figures show:
- 68.3% currently use outsourcing;
- 2.0% plan to use outsourcing in one to two years; and
- 29.7% have no plans for outsourcing.
The following was listed for their rationale:
Focus on core competencies 67.3%
Save money 61.1%
Top vendor domain expertise 55.5%
Focus on strategic growth 37.4%
Maintain/reduce head count 34.6%
Redirect capital budget 22.7%
Reduce assets on books 7.6%
Other 2.8%
What was being outsourced is also interesting:
Travel services 46.3%
Employee benefits 43.9%
Payroll 43.9%
Tax advice/processing 37.6%
Insurance administration 37.1%
Collections 18.5%
Recruitment 18.0%
Cash management 16.6%
Internal audit 16.1%
Human resources 14.1%
Sources: CFO Magazine and AMR Research
Educational institutions seem to be following the same trends.
It is also becoming more difficult to attract and keep qualified personnel. Because of this, educational institutions have initiated a number of incentives. These include work-at-home privileges, free tuition or financial assistance for key personnel, encouraging attendance at professional meetings and involving staff in decision-making.
Security Issues
Understanding the need for redundancy and back-up plans have been accelerated, especially since the Sept. 11 attack on the World Trade Center and the Pentagon. Evaluation of security systems and preservation of data have become critical. Allocation of budget resources for more complete documentation is increasing. Contingency plans are more frequently discussed with employees and tested on a regular basis. Electronic Commerce World’s October 2001 issue (Page 18) lists the following steps to assure security plans are in order:
- Dust off the disaster recovery plan - activate a disaster recovery drill.
- Revisit off-site storage - be sure it can be integrated into present operations effectively.
- Distribute operations and data - be assured two of everything exists and that traffic can really be rerouted.
- Re-evaluate business relationships with vendors - determine what assistance from providers will be forthcoming.
Conclusions
Resources for technology use to better serve the needs of the educational community, industry and society are increasing. Technology has been incorporated into the overall administration of most schools and colleges, providing more efficient data gathering and better services to students, faculty and staff. Improvements in communication systems are resulting in faster transactions and better utilization. Technologies using wireless communication; networked multimedia systems; as well as data, voice and video delivery modes are beginning to make an impact on traditional educational installations. However, consistent on-going funding and support are essential. Strong leadership stating well-defined goals and responsibilities is still basic. People hold the key in making all of this work.
