Coming election revives debate on federal IT outsourcing
Glenn Archer, CIO of the Australian Government Information Management Office (AGIMO) said while recent reports had suggested a Coalition government might outsource more of the government's $6 billion a year IT needs, he is "entirely ignorant of any such pact". The Coalition has made no policy announcements on the topic to date.
Already between 19 and 22 per cent of federal IT spending goes to three outsourcers in Australia. Unless the government of the day made specific changes that forced agencies to outsource more, it would depend on individual agency needs and CIO decisions, he said.
Yet, there is a precedent of forced outsourcing in a tumultuous IT era that began in 1997 and that many Canberra technology leaders still resent. Then, the Howard government announced a Whole-of-Government Information Technology Infrastructure Consolidation and Outsourcing Initiative headed by a new agency, the Office of Asset Sales and Information Technology Outsourcing (OASITO).
The original outsourcing plan was to be completed by 1999, but only four of the 11 major planned tenders were completed by that date. A scathing report by the Auditor-General in 2000 was quickly followed by the Humphry review and a Senate inquiry, all similarly critical.
Former ASX head Richard Humphry said at the time that while the initiative had established IT outsourcing in Australia, its continuation should be re-examined as it was not proving effective.
The approach was eventually dropped and OASITO closed.
"I would look at the Humphry report and ask what has changed since 2000," Mr Archer told IT Pro.
Read the full story at smh.com.au/it-pro
Frequently Asked Questions about this Article…
Not necessarily. Glenn Archer, CIO of the Australian Government Information Management Office (AGIMO), said a change of government does not automatically mean more federal IT outsourcing — the Coalition had made no policy announcements and he was "entirely ignorant of any such pact." Any increase would depend on individual agency needs and CIO decisions unless a government made specific, forced changes.
The article notes the government has about $6 billion a year in IT needs, and currently between 19% and 22% of federal IT spending goes to three outsourcers in Australia.
Glenn Archer is the CIO of AGIMO (Australian Government Information Management Office). He said recent reports suggesting a Coalition government might outsource more were unsupported, that the Coalition had made no outsourcing policy announcements, and that outsourcing levels would generally depend on agency needs and CIO decisions.
OASITO (Office of Asset Sales and Information Technology Outsourcing) was an agency set up under the Howard government from 1997 to drive a Whole-of-Government IT Infrastructure Consolidation and Outsourcing Initiative. The program aimed to complete major tenders by 1999 but only completed four of 11 planned tenders, drew sharp criticism from the Auditor‑General and the Humphry review, and was eventually dropped with OASITO closed.
Both the Auditor‑General and the Humphry review were critical. The Auditor‑General produced a scathing report in 2000, and Richard Humphry (former ASX head) said while the initiative had established IT outsourcing in Australia, its continuation should be re‑examined because it was not proving effective.
No. The article states that between 19% and 22% of federal IT spending goes to three outsourcers in Australia but does not name those companies.
The article highlights a precedent of forced outsourcing that proved contentious and ineffective in the late 1990s, suggesting that any future push for broad, mandatory outsourcing could face scrutiny and re‑examination. According to AGIMO’s CIO, without specific government direction, decisions will more likely rely on individual agency needs and CIO judgment.
The article points readers to the full story at smh.com.au/it-pro for more background on the federal IT outsourcing debate and the historical reviews such as the Humphry report.
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