Reference no: EM13760887

WV8 is a large not for profit (NFP) public sector organization responsible for organizing the operation of publicly financed schools within its region. WV8 receives its income solely from government grants but, because of funding cuts, is under pressure to maintain existing services whilst operating more cost effectively. Recently, a government spokesperson publicly criticized public sector organizations claiming that they are expensive; lack skills found in the private sector, such as marketing and business acumen, and have a lack of understanding of the customers they are meant to serve.

In order to meet these challenges, WV8's Chief Executive has created a policy review team comprising experts from all areas of WV8's operations. Phase 1 of the review involves looking at central support services which includes Corporate Information Systems (CIS) services. In the past there have been difficulties in recruiting specialist staff in Information Systems (the Head of CIS services claims that this is because of WV8's relatively unattractive rates of pay). In addition, service users have complained that CIS is expensive and unresponsive to their needs. Various options are currently being discussed, for example a complete decentralization of the CIS function to its main users and continuing centralized provision through a total outsourced service to a single specialist supplier.

Phase 2 of the review will involve investigating ways in which WV8 can become more business-like and the ways in which it might adopt marketing principles.

Discuss the potential advantages for WV8 of decentralizing the CIS function.