Following a quick skim, below are the IT related items I found. The only
comment I would make at this stage is that OGIT have been given a very
difficult task to oversee outsourcing of the Commonwealth's Information
Technology infrastructure. The Australian Computer Society decided at a
meeting of its Management Committee, which I chaired this morning, that it
would be appropriate to provide advice to members on outsourcing issues and
there will be more on this from the ACS in the next few days.
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Budget Paper No. 2 - "Budget Measures 1997-98" FINANCE Department of Finance
<URL:http://www.treasury.gov.au/budget/bp2/fin.doc>
Efficiencies in Whole of Government Information Technology Infrastructure -
Additional funding for Office of Government Information Technology
Function: Financial and Fiscal Affairs
Financial Implications ($m)
1997-98 1998-99 1999-00 2000-01
0.0 8.6 4.7 0.0
Explanation
The funding will enable the Office of Government Information Technology
(OGIT) to coordinate formal market testing processes across agencies for the
outsourcing of the Commonwealth's Information Technology infrastructure, and
to ensure that an open competitive process is followed with a standard
framework being used for tender specification and evaluation and contracts.
The corresponding cross portfolio measure titled 'Efficiencies in Whole of
Government Information Technology Infrastructure' provides a description of
the process and the savings attributed to each agency.
Given the scale and complexity of potential outsourcing it is essential to
ensure that a robust, consistent, well-structured and professional process
is adopted. Major outsourcing vendors are expected to have highly skilled
technical, financial and negotiating teams with considerable experience in
structuring and negotiating complex outsourcing transactions. Commonwealth
departments and agencies have limited experience in this sphere and will
require assistance in costing, contract specification and evaluation,
contract negotiation and service and performance standards specification,
both to safeguard the Commonwealth's interests and to ensure maximum savings.
OGIT will:
* provide a pool of experts with extensive outsourcing experience to provide
leadership, advice and strategic direction to the outsourcing projects, and
to assist in contract negotiations;
* develop and provide a contract, costing and project management policy
framework to assist agencies in market testing and due diligence process;
* play a lead role (at least in initial contracts) in contract development,
evaluation of vendor proposals, negotiations with vendors and financial
modeling to support the interactive negotiations;
* ensure that knowledge and experience from across all competitive tendering
processes is passed on to individual clusters;
provide assistance to smaller agencies which do not have the necessary
skills in-house; and
* provide strategic policy advice and reports to Government and steering
committees on progress against whole of Government outsourcing objective.
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Budget Paper No. 2 - "Budget Measures 1997-98"
<URL:http://www.treasury.gov.au/budget/bp2/cp.zip>
"CROSS PORTFOLIO
Efficiencies in Whole of Government Information Technology Infrastructure
Function: Agriculture, Forestry and Fishing, Education, Financial and Fiscal
Affairs, Foreign Economic Aid, General Research, General Services,
Government Superannuation Benefits, Health, Labour and Employment Affairs,
Legislative and Executive Affairs, Other Economic Affairs, nec, Public Order
and Safety, Recreation and Culture, Social Security and Welfare, Tourism
and Area Promotion, Transport and Communication, Mining and Mineral
Resources, other than Fuels; Manufacturing; and Construction
Financial Implications ($m)
1997-98 1998-99 1999-00 2000-01
Administrative Services 0.0 -25.0 -1.8 -2.0
Attorney-General's 0.0 0.0 -1.4 -3.1
Communications and the Arts 0.0 0.0 -1.0 -2.2
Employment, Education, Training and Youth Affairs
0.0 -0.7 -11.6 -11.4
Environment Sport and Territories 0.0 0.0 -0.2 -1.9
Finance 0.0 -2.0 -2.3 -2.5
Foreign Affairs and Trade 0.0 -0.1 -1.4 -2.1
Health and Family Services 0.0 -1.9 -11.0 -10.5
Immigration and Multicultural Affairs 0.0 -0.3 -3.6 -3.6
Industrial Relations 0.0 0.0 -0.4 -0.8
Industry, Science and Tourism 0.0 0.0 -4.7 -11.0
Parliament 0.0 0.0 -0.6 -1.4
Primary Industries and Energy 0.0 0.0 -0.9 -1.2
Prime Minister and Cabinet 0.0 0.0 -1.3 -1.7
Social Security 0.0 -5.9 -25.4 -24.8
Transport and Regional Development 0.0 0.0 -0.4 -1.0
Treasury 0.0 -2.2 -21.5 -22.2
Veterans' Affairs 0.0 0.0 -0.0 -0.0
TOTAL 0.0 -38.1 -89.5 -103.5
Explanation
An evaluation of possible consolidation and outsourcing of IT infrastructure
undertaken by the Office of Government Information Technology (OGIT) and the
Department of Finance found strong evidence of significant potential
benefits from such consolidation and outsourcing within a whole of
Government competitive tendering and outsourcing framework.
The Government is seeking long-term improvements in the structuring and
sourcing of IT services across agencies aimed at facilitating greater
integration in the delivery of programs and realising significant cost
savings. Efficiencies will be obtained by consolidating the Commonwealth's
IBM and compatible data centres and outsourcing IT infrastructure services
across all Budget-funded agencies subject to the outcome of competitive
tendering (CT) processes. Agencies with Running Costs below $10 million in
1998-99, and agencies operating IT systems or services concerning national
security, have been excluded from the scope of this measure. CT processes
will be undertaken in accordance with whole of Government principles and
arrangements on consolidation and competitive tendering. The corresponding
measure for funding for the coordination process is titled 'Efficiencies in
Whole of Government Information Technology Infrastructure - Additional
Funding for Office of Government Information Technology' (see Finance
Portfolio).
Whilst agencies are not required to consolidate or outsource IT
infrastructure in the absence of a sound business case they are expected to:
apply a CT process to these services and achieve levels of efficiency and
performance equivalent to those indicated in the evaluation; and
achieve savings.
Savings are based on estimates of the minimum savings agencies could be
expected to achieve through consolidation and outsourcing their IT
infrastructure and are net of employment transition costs. Savings are
effective from the end of 1998 for mainframe agencies and the end of 1998-99
for other agencies.
A successful process of consolidation and outsourcing will lead to:
* improved service delivery by integrating services to common client groups
through consolidation of IT infrastructure;
* rationalisation and standardisation across agencies;
* economies of scale from integration of data centre processing requirements;
* cost-effective technical and user support across mainframe, mid-range and
desktop/network platforms;
* improved management of IT services; and market leverage from larger volumes.
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1997-98 Budget Speech "REVENUE MEASURES"
<URL:http://www.treasury.gov.au/budget/budgetsp.htm#Speech-REVENUEMEASURES>
"...In addition, and in step with commercial trends, payments by large
withholders (that is, those with annual withholding obligation in excess of
$1 million) are to be made earlier and by electronic means."
^^^^^^^^^^^^^^^^
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Budget Paper No. 2 - "Budget Measures 1997-98" Department of Communications
and the Arts <URL:http://www.treasury.gov.au/budget/bp2/ca.zip>
"...COMMUNICATIONS AND THE ARTS
Funding for setup costs and new functions of the Australian Communications
Authority
Function: Transport and Communication
Financial Implications ($m)
1997-98 1998-99 1999-00 2000-01
3.6 0.9 0.6 0.6
Explanation
Funds will be provided for establishment costs related to the merger of the
Spectrum Management Agency and AUSTEL into a single regulatory body, the
Australian Communications Authority (ACA), and to fund costs associated with
new legislatively-based functions. The formation of the ACA is part of the
Government's telecommunications reforms...."
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Government boosts Australia's high-tech future , DIST
<URL:http://www.dist.gov.au/events/budget97/141-97.html>
"...The SBIF will provide $130 million on a two-for-one basis with private
sector capital, creating potential available funding of around $200 million.
It will allow creation of up to six early stage investment funds."
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Electronic commerce heads reforms to Medicare Benefits
and General Practice, Health and Family Services
<URL:http://www.health.gov.au/hfs/pubs/budget97/fact/fact6.htm>
"...People will have the option of electronically lodging their Medicare
claims directly from doctors' surgeries. It will substantially improve
access to Medicare services, especially for many people in
rural and remote areas..."
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Tom Worthington <tomw@acslink.net.au> President, Australian Computer
Society, GPO Box 446, Canberra ACT 2601 http://www.acslink.net.au/~tomw
Fax: +61 6 2496419
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Senate Internet Submission <URL:http://www.acs.org.au/news/senate.htm>