eGovernment Impact on Service Delivery

1. eGovernmentImpact on Service Delivery Subhash Bhatnagar Indian Institute of Management, Ahmedabad (subhash@iimahd.ernet.in) and Advisor e-government, Information Solutions Group (Informatics Program) World Bank, Washinton DC sbhatnagar@worldbank.org work in progress-do not quote

2. Presentation Structure • Methodology for Measuring Impact on Service Delivery • Results from a Study of 5 projects • Study objectives • Projects covered in the study • Analysis of Results • Are investments in eGovernment worthwhile? • Lessons for future projects work in progress-do not quote

3. Measurement Framework

4. Methodology for Assessment • Select mature, wide scope and scale projects of e-delivery of services. • Collect data through structured survey from clients, employees, supervisors using counterfactuals ( for old non computerized delivery and new e-delivery system) • Customize survey instrument to each project, adapt in local language • Data can be collected through Internet survey, face to face interviews and focus groups • Use professional market research agencies with trained investigators for face to face interviews • Determine sample frame and size so that results can be extrapolated to the entire population (often 300 clients may be sufficient). Select respondents randomly from locations stratified by activity levels and remoteness • Collect data on investments, operating costs, activity levels, revenues, employee strength from agencies. • Develop a case study-organizational context, process reform, change management.

5. Data be Collected to Evaluate Impact • Project context: basic information on the project and its context • Inputs (technology, human capital, financial resources); • Process outcome (reengineered processes, shortened cycle time, improved access to data and analysis, flexibility in reports); • Customer results (service coverage, timeliness and responsiveness, service quality and convenience of access); • Agency outcomes (transparency and accountability, less corruption, administrative efficiency, revenue growth and cost reduction) and • Strategic outcomes (economic growth, poverty reduction and achievement of MDGs). • Organizational processes: institutional arrangements, organizational structure, and other reform initiatives of the Government that might have influenced the outcome for the ICT project. work in progress-do not quote

6. Projects of e-delivery of Services • Issue of land titles in Karnataka (Bhoomi): 180 Kiosks, Launched February 2001 • Property registration in Karnataka (Kaveri): 230 offices Launched March 2003 • Property Registration in Andhra Pradesh: AP 400 offices. Launched November 1998 • eSeva center in Andhra Pradesh: 250 locations in 190 towns, Used monthly by 3.5 million citizens August 01 • Ahmedabad Municipal Corporation (AMC): 16 Civic Service Centers September 2002 • e-Procurement in Chile (Comprasnet) • Income Tax on-line in Chile

7. Analysis of Results Next 8 slides present average scores/values of the difference between computerized and manual systems as reported by 240 respondents per project • Difference between computerized and manual systems reported by users - costs, governance, service quality and overall preference • Estimated savings in costs (trips, travel cost, bribes, wait time) estimated for the entire population of users • Projects in descending order of improvement in Composite Scores based on a weighted score on 18 common attributes for each project • Descending order of post computerization composite score • Top four attributes desired in each application • Impact on agency: Investment, operating expenses, transaction volume, revenue collected • Economic viability from agency perspective • Attitude of 1200 respondents on the basis of their experience of using different eGovernment applications work in progress-do not quote

8. Overall Improvements Reported by Users work in progress-do not quote

9. Savings in Cost to CustomersEstimates for entire client population work in progress-do not quote

10. Projects: Descending Order Of Improvement in Composite Scores work in progress-do not quote

11. Descending Order Of Post Computerization Composite Score work in progress-do not quote

12. Top Four Attributes Desired in the Application work in progress-do not quote

13. Impact on Agency work in progress-do not quote

14. Economic Viability of ProjectsAgency Perspective work in progress-do not quote

15. Attitude to e-Government work in progress-do not quote

16. Conclusions • Overall Impact • Significant positive impact on cost of accessing service • Variability across different service centers of a project • Strong preference for e-Government over manual systems even though there is large variation across projects on composite scores. • Assessment of five projects define a useful BENCHMARK • Reduced corruption-outcome is mixed and can be fragile • Any type of system break down leads to corruption • Private operators also exhibit rent seeking behavior given an opportunity • For most projects economic viability can be ensured through acceptable service fees (costs are low and transaction volumes are high in India) • Small improvements in efficiency can trigger major positive change in perception about quality of governance. • Strong endorsement of e-Government but indirect preference for private participation