Seven reasons education decision

makers are “insourcing” IT

By “insourcing” IT, schools can save money, gain more control

over technology and implement strategic technology services
By Zachary Schuler, chief executive officer, Cal Net Technology Group
 Cal Net Technology Group

It’s no secret that the U.S. educational system is embattled and trying to do more with less. From budget cuts
to heightened expectations for student learning to fewer staffing resources, schools are looking for novel
solutions to complex operational issues. Some enterprising school leaders are turning to one of the latest
business models to source information technology. Rather than staffing up or simply handing over their IT
infrastructure to an outside firm, some leaders are seeking a hybrid model.

With traditional outsourcing, schools would hire an IT company to manage their IT networks. Lost in the shuffle
of multiple clients and networks, schools find themselves losing control and money over their IT assets. With a
hybrid “outsourced-insourced” model, schools still contract with a firm tasked with recommending IT solutions.
This firm, however, becomes a virtual part of the school staff and works side-by-side with other school leaders
to rollout IT investments, manage networks and bring best-in-class, diverse technology solutions to campuses.

There are many drivers compelling school districts and educational institutions to seek an
outsourced-insourced IT solution:

1. Budget pressure for both capital and operating costs.

2. New Web technologies that mean a learning curve plus shift to variable instead of fixed performance,
staff ing and capacity requirements.
3. Integration of IT across all operating areas – no longer functioning as a silo within the IT department.
4. Limited staff knowledge of software, network security, application and other IT domains.
5. Increased pressure from federal, state and local officials to do more with less.
6. Heightened awareness from school boards, officials and parents that schools need increased IT
knowledge and functionality.
7. Administrative and operational requirements to support e-learning, or distance learning.

This is a basic shift in how schools have treated their IT operations. In the past, one – or few – assigned IT
professionals oversaw hardware and software deployment and maintenance. Today, no one professional can
amass the breadth of technology knowledge necessary to keep up with the drivers.

However, despite the need to transition to a new way of handling technology requirements, many school of-
ficials are naturally reluctant to “hand off” their technology assets to an outside party. Many of these factors are
logical and some are cautionary.

s 3CHOOLS ARE RISK ADVERSE AND SHOULD BE TO PROTECT SENSITIVE DATA

s 3OME SCHOOLS LIMIT OUTSIDE VENDOR RELATIONSHIPS TO PROTECT AGAINST LAWSUITS EXPOSURE AND UNNECESSARY
expenses.
s /UTSOURCED RELATIONSHIPS STILL NEED TO BE MONITORED AND MANAGED TAKING VALUABLE STAFF TIME POSSIBLY
away from other resources and projects.

Seven reasons education decision makers are “insourcing” IT

By Zachary Schuler, chief executive officer, Cal Net Technology Group
 Cal Net Technology Group

An alternative structure is to bridge the traditional IT function with outsourcing to create a new model called
insourced IT that:

s "RINGS THE BEST OF OUTSIDE KNOWLEDGE AND FUNCTIONALITY

s 'IVES SCHOOLS A DIVERSE DEDICATED TEAM OF )4 PROFESSIONALS
s %LIMINATES THE BURDEN OF EMPLOYEE OVERHEAD

Some of the best-practice ways to craft a winning insourced model is to form advisory committees or peer
GROUPS TO SHARE KNOWLEDGE ,OS !NGELES BASED #AL .ET 4ECHNOLOGY 'ROUP IS IN THE PROCESS OF FORMING AN
education specific IT peer group, consisting of private schools in the greater Southern California area.

Its objective is to use the power of collaborative discussion and learning to push the private education sector
further down the technology road, by facilitating group discussion and accountability among peers who share
the same issues and needs at their respective educational institutions.

In the Cal Net example, its primary audience is those individuals who help shape the technology strategy for
their school. Cal Net participates in a similar style peer group for the IT services industry and has been a leader
in that group for more than four years.

Seven reasons education decision makers are “insourcing” IT

By Zachary Schuler, chief executive officer, Cal Net Technology Group