TPOC 2006 Annual Report
Telecommunications Planning and Oversight Council
November 1, 2006
Annual Outsourcing Review
As part of its legislative mandate, TPOC performs an annual
outsourcing assessment of DIR’s telecommunications services. [18]
Objective
In fiscal 2006, DIR investigated the possibility of fully
outsourcing Operator Services for the Capitol Complex Telephone System (CCTS).
Currently, CCTS operators provide directory assistance, call transfer, and
audio-conferencing support through the Conference Bridge. The purpose of the review was to determine if vendors could provide cost
savings and additional service value compared to existing DIR Operator Services
on the CCTS.
Methodology
In order to conduct this review, DIR performed a cost
comparison of its services with those provided by telecommunications service
vendors. In addition, DIR factored in the results of the 2005 outsourcing
review, which examined audio-conferencing support. The 2005 review recommended
that DIR should consider fully outsourcing the audio-conferencing services once
the Conference Bridge equipment reached the end of its useful life.
Findings
This review showed that vendors offered competitive rates
for contracted Operator Services for both directory assistance and call
transfer. In August 2006, DIR concluded that the Conference Bridge equipment
reached the end of its useful life, and determined that outsourcing
audio-conferencing services would provide cost savings and enhanced services to
DIR customers.
The review also showed that DIR’s current expansion of the
2-1-1 network to deliver a shared, secure, statewide IP infrastructure can be
leveraged to offer Interactive Voice Response (IVR) or Speech Recognition Auto Attendant service that can be utilized on the CCTS.
This service offering would require an initial application development
investment of approximately $200,000, but long-term cost savings would allow a
return on investment (ROI) within four years.
Recommendations
Based on the review, TPOC and DIR concluded that outsourcing
the Operator Services of the Capitol Complex Telephone System could provide
savings to the state and to DIR customers.
It is recommended that DIR investigate the feasibility of
using automated IVR as a Speech Recognition Auto Attendant solution for the
Capitol Complex, in conjunction with a limited outsourced live operator
service. The analysis of feasibility should confirm expected long-term cost
savings and ensure there are measurable service levels to support Capitol
Complex customers.
DIR and TPOC will continue to review
DIR telecommunications operations and consider opportunities for providing
additional value to the state through outsourcing services and functions.
