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Information technology (IT) outsourcing has for a long time been a major trend in business and government. Accountability of IT outsourcing contracts in the public administration is recognized as an important factor contributing to government transparency and public services quality, given the legislation governing these contracts and the amount of related expenditures. Considering the trend towards open government data publishing, including data on outsourcing contracts, there is an interesting opportunity for citizens to participate in the open auditing of these contracts as a means to assess the good application of public resources. In this study we explore this possibility by analyzing open data published by the Brazilian Federal Court of Accounts (TCU is its acronym in Portuguese), an interesting case since this agency has a paramount role in auditing the whole Brazilian Federal Public Administration. To this end, we gathered open data from the TCU regarding all outsourced IT services contracts maintained by the agency during the years 2000-2013. This data is analyzed to verify, from an external point of view, the related duration and values, identifying diferences between the predicted and actual amounts spent and evaluating the administration of such contracts regarding legislation. This analysis is based on a detailed survey of the relevant legislation as well as the verification of original contract terms and their addendums. As a result, we observed substantial differences in the amount spent on execution with respect to those predicted in the original contracts. Also, we identified the utilization of special justifications prescribed by law to sustain the extension of some contracts. Given these results, it is possible that IT outsourcing is not necessarily proved to be the best solution for the public sector problems regarding the lack of skilled personnel, which implies the need to assess the cost-benefit of maintaining these contracts. Also, it is possible that the existing legislation needs development in order to provide more flexibility to outsourcing contract management.

journal of information systems and technology management

Analisys of IT outsourcing contracts at the TCU (Federal Court of Accounts) and of the legislation that governs these contracts in the Brazilian Federal Public administration