By outsourcing information collection jobs for digital city administration, the government is able to save 20% of its operating cost and create hundreds of service jobs. Small or medium level cities may lease such digital city administration services to achieve cost effectiveness.
In 2005, the Ministry of Housing and Urban-Rural Development launched a nation wide digital city administration trial project. The digital city administration initiative has greatly enhanced the city management level and city images of trial cities and achieved positive social and economic benefits. Taking the city of Hangzhou as an example, after the project is in operation, the daily problem handling capabilities has increased 30 fold, while public complaints have decreased by 50%. As a result, public satisfaction rate has increased by 2.3%.
The status quo before and after Hangzhou digital city administration trial project is launched
Disadvantages of Traditional Construction Mode
According to the requirements of the Ministry of Construction, in addition to building organizational system and institutional systems, each local government shall build basic data systems including software, hardware and network facilities. City’s basic geographic information databases shall be built as well to include components such as large-scale vector map or orthophoto map, division of grids, and management data bases. The local government also needs to create teams of information collectors, call center personnel and command center dispatchers.
- The construction and application system is mainly applied in large and medium-sized cities with better economic conditions.
- Underdeveloped medium and small-sized cities and counties cannot afford construction costs due to the limitation of economic conditions, talents and management ability.
- The gap between developed cities and underdeveloped cities has been widened.
New Intelligent Concept: Digital City Service Center
Easy and efficient “digital city” application service managed by hosted digital city application service platform and professional outsourcing service provider.
Based on the philosophy of enabling “Smart + Connected + Collaborated”, Insigma provides cities with complete digital city management application systems with its unified and hosted digital city service platform. Insigma’s hosted services enables cities to implement digital city management initiatives simply by creating required organizational systems, developing related management processes and specifications, coordinating relevant government sectors, and identifying responsibilities. The city government can outsource activities, such as information collection and call centers.
The above approach enables the local government to:
- Significantly reduce the construction time and cost through speedy implementation of the digital city service platform.
- Simplify the organizational system and reduce an administrative cost, which therefore helps to greatly improve administrative efficiency and management ability of the local government.
- Liberate from detailed city management affairs and improve management efficiency. The local government then could avoid being both as the player and the referee at the same time. Instead, it will be able to focus on high-level supervision and coordination and assessing the performance of relevant departments of the city management.
The information acquisition service outsourcing model in digital city management helps the government save more than 20% of the cost and create hundreds of modern service jobs for the city.
According to performance data from cities all over the country, the information acquisition service outsourcing model can save approximately 20% of the cost compared with the in house model. Zhengzhou digital city management covers an area of 320 square kilometers. It is estimated to cost the government 20 million RMB per year under the traditional in house management model. After adopting the information acquisition service outsourcing model, the cost for the government is only 13 million RMB per year, at a cost reduction of 35%. With two information collectors for each square kilometer, this outsourcing model not only significantly saved costs but also introduced more than 600 modern service jobs for Zhengzhou
