FCR(98-99)29
For discussion
on 18 September 1998ITEM FOR FINANCE COMMITTEE
HEAD 190 - UNIVERSITY GRANTS COMMITTEE
Subhead 700 General other non-recurrent
New item "Year 2000 compliance work for the University Grants Committee -funded institutions"
Members are invited to approve the creation of a new commitment of $56.26 million to enable University Grants Committee-funded institutions to check and rectify their centrally managed information technology systems and applications to ensure that they are Year 2000 compliant.
PROBLEM
The information technology (IT) systems and applications of the University Grants Committee (UGC)-funded institutions managed centrally by their respective computer centres are not fully Year 2000 (Y2K) compliant. If not rectified in time, this will impair the operation of the UGC-funded institutions and affect their level of service.
PROPOSAL
2. The Secretary-General, University Grants Committee (SG, UGC), with the support of the Secretary for Education and Manpower, proposes to create a new commitment of $56.26 million to support Y2K compliance work in the UGC-funded institutions.
JUSTIFICATION
3. The Y2K issue is a universal problem which affects all the UGC-funded institutions to varying degrees. The issue has to be tackled without delay, especially in view of the large number of IT systems and applications installed in the institutions.
4. To ensure that these IT systems and applications can continue to function effectively and provide uninterrupted service to users, additional dedicated resources are required to enable the institutions to complete the necessary rectification work before Year 2000. The rectification work includes upgrading or replacing system hardware and software which are not fully Y2K compliant, rectifying non-compliant IT-related systems managed by the computer centres, including Management Information Systems, other administrative application systems, campus network and related network applications, personal computers, local area networks, central computing system, and applications software.
Cost and benefit analysis
5. As the compliance work is to ensure the continued effective operation of the centrally managed IT systems and applications of the UGC-funded institutions beyond Year 2000, the normal cost and benefit analysis is not entirely applicable. However, successful completion of the rectification work will avoid computer breakdowns and/or system failures which would disrupt the services and the administration of the institutions.
FINANCIAL IMPLICATIONS
Non-recurrent cost for development and implementation
6. SG, UGC estimates that the proposal will incur a non-recurrent cost of $56.26 million, made up as follows -
|
|
1998-99
$ million
|
1999-2000
$ million
|
Total
$ million
|
|---|
|
(a)
|
Hardware and software
|
13.02
|
2.67
|
15.69 |
|
(b)
|
Implementation services
|
22.22
|
18.35
|
40.57 |
|
Total
|
35.24
|
21.02
|
56.26 |
|
Encl.
|
An analysis of the funding requirements of the individual institutions is at the Enclosure. |
7. As regards paragraph 6(a), the expenditure is for individual institutions to acquire and install computer hardware, software and network equipment including the separate hardware and software for setting up Y2K compliance testing and verification environment, special testing tools, and equipment for upgrading and/or replacing any identified non-compliant equipment items.
8. As regards paragraph 6(b), the expenditure is for individual institutions to meet the costs of additional manpower resources required for identifying hardware and software which exhibit problems, verifying the upgraded hardware and software to rectify those problems, implementing software development to rectify compliance problems found in administrative and other application software systems and providing advisory services to individual departments. The expenditure includes acquisition of contract services and/or employment of temporary staff comprising about 683 man-months of computer officer grade staff; 90 man-months of analyst programmer staff and 84 man-months of computer technician staff for performing these tasks.
Recurrent cost
9. The rectification work for Y2K compliance will not incur additional recurrent expenditure.
BACKGROUND INFORMATION
10. In late 1997, the Joint Universities Computer Centre conducted a technical study on Y2K compliance for all the centrally managed IT systems and applications of the UGC-funded institutions. The study has established the need for undertaking Y2K work to rectify non-compliant systems and applications.
11. With the support of the Heads of Universities Committee, the Joint Universities Computer Centre Steering Committee submitted a proposal to Government seeking funding support to implement the Y2K work in respect of their centrally managed IT systems and applications. The Secretary for Information Technology and Broadcasting and Director of Information Technology Services have supported the proposal.
12. The checking and rectification of Y2K problem for non-centrally managed IT systems and applications will be carried out by the UGC-funded institutions using their own grants.
-----------------------------------
Education and Manpower Bureau
September 1998
Enclosure to FCR(98-99)29
Analysis of the funding requirements
of the eight University Grants Committee-funded institutions
|
Institution
|
Funding requirement
|
Estimated
cost
$ million
|
|---|
|
City University of Hong Kong
|
(a) To acquire temporary manpower of 54 man-months of computer officer grade staff to tackle the Year 2000 (Y2K) issues relating to campus backbone network, computer hardware, software and applications including promoting user awareness, provision of consultation services, testing and modification of existing application systems.
|
3.37 |
|
(b) To acquire equipment including hardware, software and tools for testing and upgrading of existing systems to ensure Y2K compliance.
|
2.23
____ |
|
Sub-total
|
5.60 |
|
Hong Kong Baptist University
|
(a) To employ additional staff comprising 96 man-months of computer officer grade staff for tackling the Y2K problems for all the network backbone/associated network systems/ applications, operating systems of central computing platforms, all centrally supported local area network (LAN) servers, personal computers (PCs) and PC packages as well as campus wide information and application systems.
|
3.06 |
|
(b) To acquire equipment including hardware, software and tools for testing and upgrading of existing systems to ensure Y2K compliance.
|
0.05
____ |
|
Sub-total
|
3.11 |
|
Lingnan College
|
(a) To employ additional staff comprising 24 man-months of computer officer grade staff and 12 man-months of computer technician staff for promoting awareness of the Y2K issue, upgrading, modification and testing of all information technology-related systems including network systems, application systems, library system, financial system and PC-LAN systems to meet the Y2K compliance.
|
1.31 |
|
(b) To acquire hardware and software for testing applications, upgrading and replacement of network, servers and PCs to ensure Y2K compliance.
|
1.14
____ |
|
Sub-total
|
2.45 |
|
Chinese University of Hong Kong
|
(a) To hire contract staff comprising 162 man-months of computer officer grade staff and 48 man-months of computer technician staff to tackle the Y2K problems relating to the administrative systems, the campus backbone network, all production systems, PC-LANs and UNIX-based systems for various departments.
|
7.87 |
|
(b) To acquire separate equipment, including hardware, software and tools, for assessing applications, for testing the modified programs and systems (so as not to affect the existing production systems), as well as for purpose of upgrading or replacing existing equipment and systems to ensure Y2K compliance.
|
1.97
____ |
|
Sub-total
|
9.84 |
|
|
|
|
Hong Kong Institute of Education
|
(a) To employ additional staff of 153 man-months of computer officer grade staff for conversion, upgrading/replacement and testing of related hardware/software for all information systems, campus wide networks and associated applications as well as provision of technical advice/assistance to all users with regard to institution-owned systems or applications to ensure Y2K compliance.
|
6.30 |
|
(b) To acquire hardware, software and tools for testing applications, upgrading and replacement of software and tools to ensure Y2K compliance.
|
2.30
____ |
|
Sub-total
|
8.60 |
|
Polytechnic University of Hong Kong
|
(a) To set up a Y2K Task Force comprising 60 man-months of computer officer grade staff and 90 man-months of analyst programmer staff to ensure Y2K compliance. This Task Force will be fully responsible for systematically identifying and assessing problems; for obtaining or devising appropriate solutions for rectification; for testing and implementing the solution to remove the risks and ensure Y2K compliance of the Central Systems.
|
8.00 |
|
(b) To procure hardware and software/testing tools for testing, conversion/upgrade and rectifying of all central systems/software/applications, network operating systems/applications, desktop computers, workstations and applications, client/server applications as well as new software licenses for Y2K compliance.
|
4.00
____ |
|
Sub-total
|
12.00 |
|
|
|
|
Hong Kong University of Science and Technology
|
(a) To employ temporary staff comprising 62 man-months of computer officer grade staff and 24 technician staff for promoting awareness of the Y2K issue; provision of consultation/technical advice, overall planning/co-ordination, testing and upgrading of central computer systems/facilities as well as administration application systems to ensure Y2K compliance.
|
4.00 |
|
(b) To set up, add on hardware and software dedicated for Y2K testing and preparation for final deployment.
|
1.50
____ |
|
Sub-total
|
5.50 |
|
University of Hong Kong
|
(a) To set up a Y2K Compliance Project Team comprising 72 man-months of computer officer grade staff for monitoring and testing all the centrally managed administrative and academic applications, operating systems, networks, PCs, workstations and servers and for implementing necessary remedies to ensure Y2K compliance.
|
6.66 |
|
|
(b) To procure separate equipment (including hardware, software and testing tools) for checking and testing the numerous applications and systems, so as not to disrupt the normal production runs of existing system, as well as for upgrading or replacing them to ensure the equipment will be Y2K compliant.
|
2.50
____ |
|
|
Sub-total
|
9.16
____ |
|
|
Total
|
56.26 |
