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
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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
 Lack of necessary technological expertise or
equipment at NSO
 Improve timeliness and accuracy of the data
 So that NSO can concentrate on their core
substantive work
 Because the job to be outsourced is complex
 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:
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Defining the technical needs of the NSO in terms
of expected output
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Specifying the requirements for the delivery of the
output in terms of timeliness, quality assurance,
accuracy, confidentiality, etc
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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
 NSO should clearly define the desired
output or product for which outsourcing
may be needed
 Document should include
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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
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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
 It’s important that NSO has a clear
understanding of the market before embarking
on outsourcing
 Important for:
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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
 Bidding process may take a long time
 Choice of contractor should be based on a
transparent competitive process
 Tender process may differ by country, but need:
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Rules for tender including announcement with
deadlines
Documents on what’s being outsourced
 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
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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
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Contract types:
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Full contract (contractor performs all outsourced work)
Mixed contract (different aspects of the work are outsourced to
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
 It’s important to have a detailed legal document
(contract) showing obligations and
responsibilities of NSO and contractor
 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
 Need to plan for data processing as part of overall
census planning
 Need to test process
 Differing objectives
 NSO’s inalienable responsibility for the whole
census operation including for the outsourced parts
 Data confidentiality and security
 Setting quality assurance standards for project
 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
 Planning for data processing should be part of
overall census planning
 Plans for data capture should take into account
the census form to be used and vice versa
 It may be advisable to choose a data processing
contractor who will also print the census forms
 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
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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
 There is likely to be a difference in
objectives between NSO and contractor
 Contractor is interested in more pay for
less work so as to obtain a profit for
their company
 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
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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
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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
 Ability of the NSO to manage and control outsourced
work is critical to the success of the project
 Ongoing monitoring is crucial to ensure continual
review of achievements against originally specified
milestones
 Monitoring very critical when outsourced work in
undertaken away from the NSO site
 A system for monitoring progress should be in-built
into the contract
 Monitoring should also include regularly scheduled
meetings
 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
 Outsourcing does not transfer risks from
NSO to contractor
 Outsourcing may bring new risks
 NSO is to blame for all problems and so
assumes all risks
 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
 Decision to outsource depends on
assessment of situation
 Need for clear specifications of the
contract
 Importance of testing the system
 NSO’s role in management and
monitoring of outsourcing
 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