White Paper IT Services In the Public Sector

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1 White Paper IT Services In the Public Sector

2 Copyrights and Trademarks Copyright 2013 arvato Systems, An der Autobahn 200, Gütersloh, Germany. All rights reserved. The content of this document is the property of arvato Systems. Any duplication, distribution or publication of this content, either in full or in part, requires the written consent of arvato Systems.

3 Table of Contents 1 Public Sector Facing Major IT-Related Challenges Trend toward IT Outsourcing in the Public Administration Choosing a Suitable Partner Data Security is the Key Issue Current IT Trends Influence Public Sector Hot Topic: Energy Efficiency arvato Systems: A Public Sector Partner...9

4 1 Public Sector Facing Major IT-Related Challenges It is hard to imagine efficient and effective public administration organizations and the healthcare service without modern information technology. Many authorities are now completely dependent on powerful, highly available IT systems. The importance of IT in the public and healthcare sectors is set to continue to increase. The public also has growing expectations regarding e-government services as they become more Internet savvy. According to Professor Kring from the ADG Business School at Steinbeis Hochschule Berlin, Germany, Generation Y, born between 1981 and 2000, will also be known as the Internet Generation. 1 No other generation has grown up so closely with modern technologies. These demographic trends as well as the clear benefits in terms of efficiency played a key role in the adoption of the E-Government Act 2, which came into force on 1st August The objective of the law is to simplify electronic communication with government agencies and allow the federal government, states, and municipalities to offer simple, user-friendly, and efficient e-government services. The law requires authorities and municipalities to establish the technological conditions necessary for government services anytime and anywhere. Key points covered in the E-Government Act: Government obligation to open an electronic channel Principles of electronic file management and scanning with subsequent destruction of original paper document Facilitate the provision of electronic proof Facilitate electronic payment in administrative procedures Fulfillment of publication duties by way of electronic journals Obligation to document and analyze processes Provision of machine-readable databases by the government (open data) The implementation of the law is a challenge for government agencies and healthcare service providers. This is due to various factors, including the increasing demand for greater process transparency, the highest data security standards, and the continuously growing volumes of data. In addition to this, the government is faced with severe budgetary constraints. Things will further come to a head in light of the legally prescribed debt ceiling, which states that, from 2020 onwards, state governments will no longer be permitted to run any structural deficit. 3 1 Generation Y Anforderung an Personal- und Organisationsentwicklung (Generation Y Requirements on HR and Organizational Development), Prof. Thorn Kring, ADG Business School at Steinbeis Hochschule Berlin 2 Gesetz zur Förderung der elektronischen Verwaltung sowie zur Änderung weiterer Vorschriften (Act to Promote E-Government and Amend Further Regulations) from 25th July Debt ceiling imposed under the German Basic Law, Research Services of the German Bundestag

5 2 Trend toward IT Outsourcing in the Public Administration The need for efficiency motivated by tough competition resulted in industry being early to capitalize on the trend to outsource non-core business tasks. The idea was initially met with skepticism, largely on account of data security issues and the resources available to the respective service provider. Now, however, IT services are being increasingly outsourced, even in the public and healthcare sectors. Outsourcing also supports efforts to manage costs and staffing requirements, with the goal of obtaining secure, cost-effective, and high-quality IT services. Likewise, it is also important to draw on the creative innovation, experience, and the strength of the partner. Figure 1: Control Desk 3 Choosing a Suitable Partner When it comes to selecting the right IT service partner, it is essential to consider aspects such as expertise and capacity for innovation, ability to deliver the quality desired, and availability of the required personnel and technical resources. The partner should perform data processing in Germany due to the need to meet strict data protection standards. In addition to meeting these high security standards, including the storage of data at German-based data centers, it is also necessary for the partner to deliver top-rate service quality, be able to make fast and flexible decisions, and engage in sustainable, energyefficient practices. For the client, the stated aim of the partnership is naturally to reduce the strain both on its finances as well as in terms of staff resource requirements. Government agencies and healthcare service providers are also subject to a wide range of legal regulations, as well as being the focus of public attention. These special requirements call for a partner who knows and understands the targets of public institutions, and has a large wealth of experience to draw upon. It is particularly important to work as equal partners and promote ongoing bilateral exchange. This is the only way to ensure that the services are adapted to meet the needs of those using them, that new services are developed, and that current trends are reflected in the services offered.

6 4 Data Security is the Key Issue Government agencies and healthcare service providers both handle and store highly sensitive personal data of members of the public, customers, and patients. This in turn involves special legal requirements in terms of data protection and data security. At the same time, IT trends such as cloud computing, social media, big data, and virtually unlimited mobility exacerbate the security situation. That s why data security and data protection have to be the top priority for every IT service partner. One key decision is to operate the data centers and only process data within Germany. Companies with a German subsidiary are in a position to offer the highest level of data protection. arvato Systems data centers are located in geographically stable zones and are among the most secure and modern in Germany. Innovative security systems housed in secure rooms with efficient climate-control systems and redundant power supplies, access control systems, early warning fire detection systems, and highly qualified personnel are some of the many advantages that arvato Systems data centers have to offer. The security management system is certified to ISO / IEC Figure 2: Single person access system (left) and emergency power diesel generator (right) Team of Experts Ensures Data Security In addition to physical security, a team of IT security experts also guarantees digital data security. The following aspects are covered: IT network security (firewall, intrusion prevention systems, web security, network access control, private service area) Data security (SecurID cards, USB security token for encryption, authentication, and signature) Compliance management (logging service, vulnerability management) End point security (local virus scanner, hard drive and USB encryption, mobile device management)

7 5 Current IT Trends Influence Public Sector Government agencies and healthcare service providers are confronted new IT developments one after another, in ever increasing numbers. It is necessary to examine the benefits offered by each one on an individual basis and determine to what extent it can be implemented. When it comes to current and future trends, the IT service partner has to have the capacity and flexibility to build up the required expertise in order to provide the client with expert advice and offer the respective services as required. BYOD Trend Demands Clear Mobile Security Strategy Bring your own device, or BYOD, is a trend whereby employees use their own devices within the IT systems at work. While the trend has aroused much skepticism and criticism, many companies will be forced to follow suit in order to remain an attractive employer. A clear mobile security strategy guarantees compliance with legal and agency-specific requirements in terms of data protection and compliance. In addition to the encryption of content for secure data transfer, rules must be put in place to establish who has the right to run what in the network, when and with what device. arvato Systems supports its customers in defining and implementing mobile security guidelines by providing expert IT consulting and high-performance services for managing mobiles end devices. Big Data Creates Foundation for Sound Decisions Security considerations become even more important in view of another trend: big data. This represents one of the fastest-growing segments in the IT market, according to Steve Janata, Senior Advisor at the Experton Group 4. The analysis of data collected using a range of devices or applications forms the basis for future-proof decisions. If government agencies are interested in storing, analyzing, and using information such as energy consumption data from smart measuring devices, traffic data or geo data for planning purposes, they will inevitably have to jump on the big data bandwagon. As a systems integrator, arvato Systems supports government agencies and healthcare service providers in developing and implementing big data strategies. In doing so, clients benefit from the company s comprehensive experience in mapping processes using state-of-the-art information technology. 4 Experton Group press release from 16 October 2012: Licht ins Dunkel erste Marktprognosen der Experton Group zu Big Data (Light in the Darkness: Market Forecasts on Big Data by the Experton Group)

8 Cloud Computing Ensures Maximum Flexibility and Scalability Cloud computing is being touted as the absolute megatrend. While new trends in the field of IT often prove short-lived, cloud computing has not drifted into obscurity as some many others have. Indeed, it is growing in popularity. Cloud computing is already in full swing in the public and healthcare sectors. Some 39 percent of government agencies purchased cloud services in 2010 according to the recent Cloud Computing: Evolution in the Cloud study by PricewaterhouseCoopers. Experts expect this number to increase to 50 percent in The advantages of cloud computing are clear to see. Cloud solutions are flexible, and with maximum scalability you can provide services over the Internet in the required quantity and quality and bill customers for these services in a clear and fair manner. Cloud services are generally provided in a rental model. Billing is not regularly carried out according to the duration of the contract; rather, it is based on use, for example. Subscription offers are also interesting. Here, users are free to subscribe or unsubscribe on a monthly basis. This way, cloud solutions and the costs for providing them can adapt to changing requirements. Cloud services are provided over the Internet or via direct connections. As a result, the question of confidentiality, data protection, and data security has become extremely important. Furthermore, meeting customer compliance requirements is a primary concern. This is why arvato Systems applies a number of guiding principles for the public sector, including the following: The initial focus is on the private cloud. Cloud solutions are operated at German Data Centers that have been certified in accordance with the international security standard ISO / IEC Figure 3: Certificates 5 Evolution in the Cloud study by PricewaterhouseCoopers published in March 2013

9 6 Hot Topic: Energy Efficiency Every user of comprehensive IT installations today must look toward energy efficiency. It goes without saying that this also applies to government agencies and healthcare service providers. That is why arvato Systems takes a holistic approach to energy efficiency. The latest technologies and building systems have made it possible to implement a series of measures that have led to significantly lower CO 2 emissions and power consumption. Examples include utilizing waste heat to heat 10,000 square meters of office space and installing a special cooling system that saves 1.3 MWh of power, equivalent to the annual energy consumption of 260 households. The success of these efforts has been recognized with a string of awards, including the 2010 Green IT Best Practice Award. arvato Systems Data Center was awarded four stars for operational security and an additional green star for energy efficiency, following a Data Center Star Audit performed by eco, the Association of the German Internet Industry. 7 arvato Systems: A Public Sector Partner arvato Systems has already been working with public institutions, authorities, and healthcare service providers for a number of years and understands their individual and strategic goals and supports them with the appropriate solutions. The company operates its own data centers and networks in Germany and is in a position to offer high-performance, secure private cloud and SaaS solutions, among many things. Major corporations such as Microsoft and SAP have presented arvato Systems with a number of awards for successful customer projects over the years. The company combines many years of experience as a service provider and consulting firm with an indepth understanding of public services and the challenges faced in this area. The subsidiary of the venerable Bertelsmann SE & Co. KGaA provides assistance in analyzing and planning. It also helps to implement more powerful processes and IT solutions and integrate them into existing system landscapes. arvato Systems distinguishes itself as a reliable partner that manages and develops IT applications and IT infrastructures for its customers. This considerably reduces internal IT costs and creates real added value. Find out more at Contact Partner: Jan Wemmel jan.wemmel@bertelsmann.de

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