FED: Govt says outsourcing of IT saves taxpayers millions

AAP General News (Australia)
04-22-1999
FED: Govt says outsourcing of IT saves taxpayers millions

SYDNEY, April 22 AAP - Allowing the private sector to supply information technology to
government agencies had saved taxpayers millions of dollars and spurred a homegrown computer
industry, federal Finance Minister John Fahey said today.

Mr Fahey said despite criticism about the cost of outsourcing, three contracts with outside
providers since 1996 had resulted in a $170 million saving to taxpayers over five years.

The contracts also had provided about $160 million of work for small to medium-sized
businesses and created 208 jobs in regional Australia, he said.

"The bureaucratic and technical empires of yesterday are being shaken up and government
agencies are being encouraged to focus on their core business," he told an Australian
Information Industry Association meeting here.

"IT used to be regarded as a curious novelty by bureaucrats who would think of 'The
Jetsons' whenever you mentioned technology.

"Today, IT is regarded as a flexible tool to facilitate the business of government."

Government policy on IT outsourcing was unashamedly interventionist, with a view to
expanding the local IT industry, he said.

"If our only objective were to achieve savings, I could achieve huge savings with one 25
cent phone call to a multinational," he said.

"Our policy has acted as a catalyst, attracting international operations to Australia;
fostering relationships between the public and private sectors and encouraging small to medium
enterprises to develop an international focus."

AAP shm/tsm/pa

KEYWORD: OUTSOURCING

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