The Australian reports that Government plans to bypass the Canberra IT industry and consolidate on less expensive models are well underway.
- “We’ve moved from 42 separate enterprise agreements on the core desktop parts of our Microsoft spend to having some 88 agencies under one agreement,” he said. “We’re getting a saving of at least $15 million per annum over four years.”
Two other whole-of-government agreements are under negotiation, for telecommunications and desktop computing infrastructure, and the Finance Department is pursuing a third, for procurement of office equipment such as photocopiers and printers.
Agencies were also starting to explore suppliers outside Canberra to reduce costs and risk. “The IT market in Canberra can be quite expensive, so we are looking at how agencies can do business with firms in other states,” he said.
With the first round of cuts to agencies’ business-as-usual funding meeting the targets set by Sir Peter, AGIMO is turning its attention to performance and wider collaboration for the second round.
It’s probably going to be some pain for the local “IT sector”, but losing the players who really are providing nothing useful, and with no innovation, could well be a good thing in the long term.