City to hire consultant to finalize IT outsourcing

San Diego plans to hire a consultant to complete the process of outsourcing technology services provided by the city-controlled San Diego Data Processing Corp., Mayor Jerry Sanders said Thursday.

The move is intended to improve efficiency and save money, he said.

In April, the City Council authorized a $1.23 million contract with a private company to take over the technical support functions now performed by DPC. The one-year contract with Gardena-based En Pointe Technologies begins in August.

“Today we are moving ahead with the next step in this process,’’ Sanders said.

Data Processing Corp. has managed San Diego’s information technology needs for the past three decades, employing about 250 people. The quasi-city agency, which is charged with maintaining thousands of city computers and telephone’s and operating San Diego’s Web site, had a $43 million budget this year.

The contract with En Pointe is expected to save San Diego about $1 million annually, Sanders said. Outsourcing the rest of DPC’s functions could reduce the city’s information technology expenses by as much as 45 percent, he said.

Sanders said it wasn’t clear how much the consultant would cost, but hoped to have someone by late July or August.

DPC’s remaining functions may go to one contractor or several, he said. DPC will also be asked to bid on the contract.