Question Period Note: Outsourcing information technology (IT) services

About

Reference number:
PSPC-2023-QP-00065
Date received:
Nov 7, 2023
Organization:
Public Services and Procurement Canada
Name of Minister:
Duclos, Jean-Yves (Hon.)
Title of Minister:
Minister of Public Services and Procurement

Issue/Question:

Media reports have focused on the year-over-year increase in general outsourcing by federal departments. A Globe and Mail article recently reported the federal government hired KMPG consultants to provide managing consulting advice.

Suggested Response:

  • SSC works to ensure the operation of secure, modern, and reliable government information technology (IT) infrastructure and systems

    • SSC has established a robust process to assess all potential options for delivery. This process focuses on best practices, existing capacity and solutions to determine whether:
    • the solution can be built and operated in-house
    • commercial solutions should be included
    • external expertise is needed to achieve the desired outcome

    • Accessing some services and technologies through contracts enables SSC to provide effective digital solutions and services that are aligned with global best practices

    • Proving access to services and technologies best delivered by industry allows SSC to provide secure and cost-effective solutions to meet the needs and expectations of a digital government
    • In doing so, SSC is able to leverage large-scale investments that industry has made in other public sectors and private markets to obtain cost-effective, secure and reliable off-the-shelf products and highly specialized solutions

If pressed on management consulting:

  • SSC is committed to providing high-quality services to Canadians while ensuring the best value for taxpayers. The procurement of professional services, including management consulting services, is sometimes needed to acquire special expertise
  • Work performed by management consultants is diverse, and can include providing advice on SSC’s technology roadmaps, performing a third-party review on a business case, providing support to SSC in developing processes , or supporting tools for SSC enterprise services
  • SSC exercises due diligence when contracting for goods or services. All contracts are to be issued in accordance with the Treasury Board policies, as well as regulations, guidelines and procedures

If pressed on reasons for “outsourcing” technologies:

  • SSC ‘outsources’ access to technology where it would be more costly to deliver it directly. Satellite services are an example of a highly specialized domain where industry excels and the technology is better delivered by the private sector
  • Another example is the contract for the High-Power Computer that Environment and Climate Change Canada uses to generate environment and weather forecasts, advisories, and warnings. This is an example of a highly specialized domain that would cost more if delivered internally

If pressed on reasons for “outsourcing” work:

  • SSC uses temporary professional services for specialized IT expertise from the industry to complement its internal capacity and support programs and projects that have defined periods and require surge capacity for delivery
  • SSC is committed to managing industry resources responsibly without compromising the planning and execution of its time‑limited programs and projects

Background:

Not available

Additional Information:

Not available