Stan Beer
Thursday, 16 October 2008 15:43
IT Policy -
Government Tech Policy
Page 1 of 2
The anticipated independent review of the Australian Government's use of ICT by Sir Peter Gershon has been released and it spells bad news for vendors, recruiters and technology contractors but good news for permanent ICT staff. The report recommends $540 million in ICT spending cuts and slashing the number of ICT contractors by 50% in the first two years alone, while implementing a framework and skills training for more permanents.
Sir Peter Gershon, a former Chief Executive of
the UK Treasury’s Office of Government Commerce, was appointed to
conduct a review of Australian Government's management of ICT in April
this year. Mr Gershon had previously undertaken strategic reviews for
the UK Government on procurement including ICT and public sector
efficiency, resulting in a claimed £23 billion in budget savings.
Six months after commencement of the review, the subsequent Gershon
report has painted a dismal picture of the management of ICT spending
within Australian Government agencies.
The report also slams the performance of government agencies in the
area of sustainability with regard to their use of ICT, specifically
identifying energy costs and carbon footprint.
Among the key findings of the review:
1. There is weak governance of pan-government issues related to ICT.
2. Agency governance mechanisms are weak in respect of their focus on
ICT efficiency and an understanding of organisational capability to
commission, manage and realise benefits from ICT-enabled projects.
3. The business as usual (BAU) ICT funding in agencies is not subject to sufficient challenge and scrutiny.
4. There is a disconnect between the stated importance of ICT and actions in relation to ICT skills.
5. There is no whole-of-government strategic plan for data centres. In
the absence of such a plan, the Government will be forced into a series
of ad hoc investments which will, in total, cost in the order of $1
billion more than a coordinated approach over a 15-year period.
6. The government ICT marketplace is neither efficient nor effective.
7. There is a significant disconnect between the Government’s overall
sustainability agenda and its ability to understand and manage energy
costs and the carbon footprint of its ICT estate.
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