New mayor looks to privatize Methuen IT department

Publication Date: 
1/4/2012

Author Information

Brian Messenger
The Eagle Tribune

METHUEN - An effort to privatize the city Information Technology department is gaining momentum and appears to be an early priority for Mayor Stephen Zanni.

Zanni said he will closely consider outsourcing the four-employee municipal IT department in the coming weeks.

That could mean hiring a private company to build and maintain an IT network for the city and offer employees technical support, or leasing - rather than purchasing - computers and other hardware at City Hall, which Zanni said are now old and in need of replacement.

"If we can save by privatizing versus in-house and it becomes more efficient, I'm going to move in that direction," said Zanni. "If we can streamline government and make it more efficient, saving taxpayer money, that's what I'm here for."

Zanni is reviewing all municipal departments as he takes over for former Mayor William Manzi and he said the IT department is first on his list.

"I'm going to look at every single department," said Zanni. "It's going to take a little time over the next few months."

Methuen budgeted $1.5 million for IT this year. That includes $900,000 for the School Department, which has 10 IT employees.

The idea of IT privatization has been met with scepticism from Methuen's top IT personnel after former City Councilor Jim Hajjar first broached the subject during summer budget talks.

Hajjar believes Methuen can save money and improve employee efficiency by hiring a private company. Privatization would also allow the city to shed future health care and pension costs.

At the City Council's request, Manzi solicited interest from companies to conduct an IT study and selected RetroFit Technologies, Inc., of Milford.

In its Methuen IT report, RetroFit recommends privatization. RetroFit is a "privately-owned, full-service network integration company providing IT services to small and medium-sized companies as well as schools and government," according to the company's website.

A number of problems or shortcomings with the city's current IT services were identified in the report and outlined Nov. 26 in a confidential memo sent by Manzi to city councilors.

Among the highlights:

Planning on how to spend for IT is "inadequate"

Desktops now "exceed their useful life cycle by a significant amount of time"

There is no "cohesive" equipment and software replacement policy

Problems exist with how IT department interacts with software vendors

There are "serious issues" with data backup and no recommended fix

System problems during emergencies and power outages have "handicapped" city services

"I do believe that some of the problems associated with IT service have been beyond the control of the current employees," wrote Manzi in the memo. "But there are instances of criticism that are valid and constitute recognition of ongoing managerial deficiencies, which we are attempting to identify and solve through this process."

Manzi wrote in the memo that RetroFit is willing to retain one current employee from the municipal IT department if it is hired to take over as a private IT vendor for the city.

Zanni said he will consult with both RetroFit and city IT employees before making a decision. If he chooses to privatize, Zanni said he expects to do so in phases, with the process continuing into the next fiscal year, which begins July 1.

"I want to give both sides an opportunity to see how it works," said Zanni. "If we can save some serious money, then of course I'll look to privatize ... If not and it looks like we can't save money, we're going to have to work with what we have."