San Diego councilmembers approved a contract Tuesday that will outsource information technology jobs to two outside companies.
The contracts with Xerox State and Local Solutions, Inc. are expected to save the city anywhere between $5.7 to $11.1 million over the next five years, according to a city spokesperson.
The two companies will revamp the city's phone system, and are scheduled to start next month.
Approval of the contracts was the final step in Mayor Jerry Sanders' plan to outsource IT jobs. He announced the plan when he unveiled his budget proposal. The savings from outsourcing the city's IT job is partially responsible for the surplus in the budget.
The contract will cost about $60 million over five years, and will not use off-shore service delivery, according to a docket analysis.
“This program will also make the IT budgeting process more transparent, create a data center that can support better disaster recovery and business continuity services, and more predictability in the city’s IT costs," Sanders said in a written statement. "We’re finally updating our 1970s-era technology so we can better serve the public."
Two other contracts were approved by the council as part of Sanders' plan last month. Atos IT Solutions & Services, Inc. will work on the city's data center and CGI Technologies & Solutions, Inc. will work on the city's application development and maintenance services.