Experiences

Implementing Shared IT

Services R. Scott Studham Chief Information Officer

University of Tennessee

What are “Shared Services”?

Maturity Level 1

• Shared infrastructure via collaboration across IT organizations.

Maturity Level 2

• Common business practices, with strong customer driven IT governance.

Maturity Level 3

• Centralized IT organization with no budget. The IT organization is purely funded as purchased services from other organizations (customers).

Oak Ridge

National

Laboratory Status: Complete implementation of

Level 3 shared services in four years.

Benefits: Improved customer services, 15% cost savings while still being able to support modernization projects and increase in overall size of company by 150%.

Strategy: Centralize, then Standardize, then Modernize.

Pain: Centralization of all IT staff caused a 1 year “social nightmare.” But the improved ability to delivery overcame this.

University of

Tennessee Status: Year 2 of a 4 year journey. Moved

from Level 1 to Level 2.

Benefits: Addressed the “Crisis of confidence.” Starting to see real cost savings due to customers having control (they stop buying their own IT staff).

Strategy: Make the core credible. Give customers control. Remove duplication.

Pain: Did this without a “massive centralization.” “Purchased Service” is still new to higher education. Most accounting practices still need to be modernized.

What Does This

Mean At The

University Of

Tennessee?

Phone, Cable

& Network

Service

Centers

Student

Technology

Fee UTK IT

Budget System IT

Budget

Application Services $969,248 $83,697 $3,034,842 $2,162,091

Application Development & Integration $1,535 $371,031 $257,404

Business Systems Support $81,314 $12,449 $548,743 $1,054,250

Research Systems Support $24,640 $66,051 $623,075

Student Systems Support $863,295 $69,713 $2,049,017 $227,362

Benefits $1,075,829 $331,047

Cable Tv & Telephone Services $5,778,435 $115 $9,362 $145

End-user Services $1,729,109 $3,464,283 $3,987,120 $1,735,655

Computer Labs $1,178,530 $34,606 $4,325

Desktop Computing $28,686 $35,426 $3,221

Desktop Computing-general $304,827 $631,294 $84,936

End-user Services $337,886 $1,411,531 $938,805 $1,052,485

Instructional Technology $364,486 $404,888 $396,002 $9,613

Media & Event Support $945,450 $45,895 $307,522 $54,643

Messaging & Collaboration $51,622 $22,166 $1,173,799 $495,604

Research Support $980 $96,446 $469,667 $30,828

IT Administration $428,355 $190,258 $633,224 $581,524

Network Services $2,176,249 $50,471 $31,158 $30,485

Network Security $658,936 $7,962 $30,384

Remote Access $4,778 $1,766

Wired Network $1,264,134 $0 $21,430 $101

Wireless Network $248,402 $50,471

Security Services $21,496 $144,533 $289,143

Compliance & Assessments $23,679 $40,650

Incident Response $13,009 $6,649 $1,179

Security & IT Policy Administration $1,291 $57,444 $96,673

Security Infrastructure Systems $4,095 $56,762 $150,640

Security Services $3,101

System Services $138,510 $2,503 $487,454 $141,637

Account Management $995 $2,503 $36,167 $63,046

Backup & Recovery $17,168 $78,462 $30,902

Data Center & Servers $72,502 $167,150 $19,169

Database Administration $23,815 $3,292

High Performance Computing $19,084 $128,555

Systems Administration $28,762 $53,305 $25,229

Grand Total $12,317,231 $4,122,374 $8,327,694 $4,940,678

• IT Budgets Are Based On

Services, Not The IT Organization.

• Customers Directly Decide How

Much Of Each Service Gets

Funded.

• IT Follows “ITIL.” ITIL Is An

International Standard On How To

Manage IT.

Roadmap To

Shared Services Finance Controls money, which is

needed to enforce policy.

HR Controls hiring of new

resources (it can be done

in parallel with IT).

IT A single organization to

modernize electronic

business processes.

Other Then you do everything

else (such as facilities, etc).

It may take years

My Suggestions For UNT Ensure The Roots Of The Organization See The Benefit In This

Set A Realistic Timeframe With Milestones

Hire A Strong System CIO Who Has Authority To Review All “IT Finances & Positions”

Make Sure The New CIO Lives “Customers Need To Control IT, Not The CIO”

All Services At Any Campus Should Follow An International IT Operating Standard Such As ITIL

Campus IT Needs To Be Centralized or Rationalized

All IT Services Will Be Budgeted By Service

No Spending On IT Services Except By Customer Direction