UN Should Consider Outsourcing, Moving Jobs: Annan 
By Reuters
March 7, 2006
The New York Times
Original Source: http://www.nytimes.com/reuters/international/international-un-management.html

UNITED NATIONS (Reuters) - The United Nations should consider outsourcing some work or moving it to developing nations where it can be done more cheaply, U.N. Secretary-General Kofi Annan recommended as part of a broad management overhaul.
In a report to be released later on Tuesday, Annan proposes steps including employee buyouts, a new computer system and taking more control over key departments, according to portions obtained by Reuters.
Despite some savings, initial investments proposed in the report to train staff, update technologies and dismiss employees could cost the organization $500 million, diplomats estimated. Staff buyouts are estimated at $100 million.
Many of the proposals including those on outsourcing are expected to be opposed by developing nations who could lose clout under the reorganization or whose citizens now working in New York might be affected.
``We are particularly interested in exploring the benefits of possibly relocating certain administrative functions to lower-cost countries, but we will need to undertake a detailed cost-benefit analysis in each case,'' the report says.
Moving the United Nations' extensive translation services out of its New York headquarters building could save some $35 million annually and release three floors of work space, according to a February 12 consultant's report.
The February report analyzes contracting operations to a third party or shifting work to a lower cost location, such as Asian nations. China is known to have an interest in this project.
About 4,500 people work at U.N. headquarters in New York, where its main bodies -- the General Assembly, the Security Council and the Economic and Social Council are located.
Annan's report was a response to a request by world leaders at a U.N. summit in September, following scandals over the U.N. oil-for-food program in Iraq and contract-fixing.
The United States has made progress on management reform a condition for refinancing the U.N. budget on June 30.
The financial plan, reluctantly approved by the General Assembly in December, has caused animosity between U.S. Ambassador John Bolton and many poor nations who feel rich countries want to cut programs and jobs that benefit them.
Tuesday's report also asks the 191-member General Assembly to give the secretary-general more power to allocate and consolidate jobs within the often bureaucratically entangled global body. For example, at the moment there are nearly 40 separate peacekeeping accounts.