| CNIC Initiative |
|
|
 |
| Frequently Asked Questions |
|
June 14, 2004 - this page represents questions received from state employees. The page is organized by topic:
- Accenture LLP
- General
- Human Resources
- Job Duties.
ACCENTURE LLP
Q1. Will Accenture do the implementation phase, provided there is one?
A1. If the state moves forward with consolidation, Accenture will be directed to proceed to Task 7 of the existing contract with the state of Oregon. Task 7B requires development of a detailed Statement of Work for implementation; the Statement of Work would be the basis for further negotiations with Accenture. As described in Task 10, the state has sole discretion to proceed with implementation, and may choose to have Accenture perform the work.
In the event the state proceeds with implementation and chooses Accenture to perform the work, the state and Accenture will attempt to negotiate mutually agreeable amendment(s) to the contract. In the event the state does not negotiate satisfactory contract amendment(s) with Accenture for implementation, the state reserves the right to re-solicit with other potential contractors for all or part of implementation.
Q2. Who will provide quality assurance over Accenture?
A2. If it is determined that a compelling business case for proceeding with consolidation exists, it is likely that the project characteristics (cost, complexity, criticality, etc.) would meet the criteria outlined in the Statewide Technology Investment Strategy Development and Quality Assurance Reviews Policy. Consistent with that policy, the state would obtain independent quality assurance services to oversee implementation of the project.
Q3. Is Accenture being sued?
A3. There are no known lawsuits against Accenture, LLP or Accenture, Ltd that Accenture is aware of at this time.
Q4. Is Accenture an offshore company? What about public perception? (Updated October 2004)
A4.
Accenture Overview
- Before incorporation, Accenture operated as a group of more than 40 locally owned partnerships and corporations in 47 countries.
- Accenture was never incorporated in the U.S.
- In 2001, Accenture’s partners chose to move to corporate form and to seek a public listing.
- Given that at the time of the vote fewer than half of Accenture’s 2,500 partners were U.S. partners, it was particularly important, as a cultural matter, for the organization to select a neutral location for its parent company. After reviewing a variety of options, Accenture’s partners voted to incorporate in Bermuda.
No Income Previously Subject to U.S. Tax was Removed from the U.S. Tax Base
- Today, as in the previous structure, Accenture pays tax in the countries in which it operates. Accenture pays, and has always paid, U.S. tax on income generated by U.S. operations.
- Accenture operates in the U.S. through its subsidiary Accenture LLP with 25,000 employees. Under the prior structure, Accenture LLP paid U.S. tax through its individual U.S. partners. Currently, tax is paid on Accenture LLP’s income by its owner, a U.S. corporation.
- The income generated by Accenture’s non-U.S. partnerships or entities was not previously subject to U.S. tax. Therefore, no U.S. income or non-U.S. income previously subject to tax was removed from the U.S. tax base by the transaction.
- A General Accounting Office (GAO) report issued in October 2002 did not include Accenture on a list of government contractors that did a “corporate inversion.”
- In a news story after the report was issued, the GAO Director of Tax Issues said: “since Accenture didn’t have a corporate structure to begin with, it didn’t have a corporate structure to invert.”
GENERAL
Q5: What is in it for the agency? Any benefits?
A5: Improving the efficiency of state government and lowering costs is of benefit to everyone who lives in Oregon, and the two guiding principles of the CNIC project are to reduce costs while maintaining or improving service levels. The IT departments of state agencies currently provide a service to the agency’s core business. CNIC changes this to a “shared services” business model. Shared services leverage efficiencies and benefits inherent in larger organizations (e.g. economies of scale, larger capacity, improved security, enhanced training opportunities for staff). Agencies will still determine the IT services required for their agency.
Q6: What’s the cost/risk to the state if we have one data center and it’s the target of terrorism?
A6: Disaster and business continuity planning are key elements in every IT business model, and the additional costs to mitigate the risk of fewer points of failure will be factored into the business case and implementation plan. These plans help mitigate the cost and duration of business disruption but never entirely eliminate the risk. Careful disaster and business continuity planning will be handled as the project progresses.
Q7: Is this politically driven? Example: Burns backup site.
A7: No. Data center consolidation is one of the strategies identified in the Enterprise Information Resources Management Strategy, originally developed in 2002 by the Information Technology Executive Council and state agency CIOs. The concept of creating a shared services data center is driven by a desire to improve the efficiency of state government. Individual political gain has not played a role in CNIC project decisions or proposals.
Q8: We have heard there is a possible location in Salem for the new data center. Can you tell us where that location might be?
A8: The requirements for a data center and the lead time to prepare such a center for occupancy forced the CNIC team to search for specific available sites early in the project. There are few available sites in the state that meet the state’s criteria for a data center. One available and suitable site is a manufacturing facility that was never completed and remains unoccupied. That site’s location is 4040 Fairview Industrial Drive SE.
Q9: Is there a process for an agency to back out of the data center?
A9: Yes. If either the business case or detailed implementation plan reveals that consolidating a particular agency dilutes the business case (i.e. reduces the overall return on investment for the enterprise) the CNIC Governing Board can recommend to the governor that the agency be excluded. The governor will make the final decision.
Q10: What thought has gone into planning for the consolidation? Is the goal to house current equipment in one or two sites or to consolidate equipment? If equipment is consolidated, what plans are there to merge the varied and divergent philosophies, standards and staff of the various centers?
A10: Planning for data center consolidation has been an ongoing activity within Oregon state government for several years. If consolidation occurs, the resulting shared services data center will be a new organization governed by agency directors from the participating agencies. New processes, standards and policies will be established to maximize the efficiency of the new organization. In the near term, if there are obvious opportunities for hardware reduction they will be included in the business case and future planning. If the state moves forward with consolidation, more detail regarding this question will be available when the detailed implementation plan is complete (in the September timeframe).
HUMAN RESOURCES
Q11. When considering locating outside the Salem area, how do you balance cost savings with the cost to families (financial and emotional) to being uprooted?
A11. The actual financial cost associated with moving is one that can be directly taken into account when putting together the business case. It is very difficult to put a dollar amount on the emotional cost to families. The decision makers are very aware of employees´ concerns in this area and it will be considered as a factor in the decision. If the initiative moves forward to implementation, every effort will be made by the state to address the concerns of affected employees.
Q12. Is it true you would only hire the “best and the brightest” to staff the data center?
A12. If the state moves forward to implementation, it is in the best interest of the new data center (and the state) to have highly qualified staff from the participating agencies involved in the new center. This will ensure that the critical agency knowledge base is transferred to the new center thus enabling it to provide the highest level of customer service. However, this must be balanced against contractual obligations such as seniority. Criteria for selection of the new staff will be addressed by a labor-management committee.
Q13. Many staff are at or near the top pay grade for their positions. Will they be hired into the new positions at the same grade?
A13. The salary ranges of the new positions will not be known until the new job descriptions are written and classified. Transitions to new positions and/or salary levels are generally outlined in collective bargaining agreements and agency policy. Some elements of transition may be addressed by the labor-management committee that is currently meeting.
Q14. As this is a multi-agency consolidation, if there are layoffs will represented staff have bumping rights across agency boundaries?
A14. Generally, collective bargaining agreements do not provide for this broad range bumping. This is an issue that will be discussed with the labor-management committee.
JOB DUTIES
Q15. Currently the data center technical staff spends a significant amount of time supporting applications and security staff. Will those duties be absorbed into the new consolidated data center or pushed back to the agencies?
A15: The new consolidated data center is a shared service organization that provides IT services to participating agencies. If the state moves forward with consolidation, the issues raised in this question will be answered in the detailed implementation plan (in the September timeframe). The 12 participating agencies have many processes in place that may or may not be carried over to the shared services business model.
Q16: If staff is hired (management, technical and operational) prior to the data center being ready, would people be required to do double duty (new site planning, etc and their current responsibilities)?
A16: If the state moves forward with consolidation, details of duties and responsibilities will be defined as the new organization is built. Careful transition planning by people experienced in consolidation efforts is a key element to the success of the project. During the transition, it is likely that people will have blended responsibilities - to the new data center and to the agency they were working in prior to CNIC. These issues will be addressed in the detailed implementation plan (in the September timeframe).
Return to CNIC Project home page
|
|
| |
|
|
