Faults found in government ICT practice
Faults found in government ICT practice
A new study has revealed that the government could save more money for taxpayers if it adopted a more flexible and informed approach towards ICT contracting within the government.
The AIIA study, "Better Practice, Better Outcomes", carried out by law firm Corrs Chambers Westgarth and Lumbers Consulting identified key policy problems, which could be eradicated.
Rob Durie, the chief executive of the AIIA said: "The government's default position of uncapped liability in ICT contracting has long been problematic for the industry.
"Our study shows however, that there is a win-win alternative which will see both government and industry realise significant cost savings and better project outcomes.
"Government contracts are crucial to the growth of many local companies, providing the opportunity to work on innovative solutions and obtain internationally recognisable reference sites."
The key benefits identified for adopting a more flexible approach to limiting supplier liability under ICT contracts included: cost savings for government; more smaller and medium ICT companies being able to participate in contract negotiations; better contract results and greater focus on project risk management; reduced negotiation costs by thousands per contract and less money sent to offshore insurers.
Durie added that one of the major problems facing many small businesses is their inability to pay for required insurance premiums due to insufficient funds.
The report advises that the government should be more flexible about procurement policies and should deal with each contract on a case by case basis. Risk management training would support this for government officials.
Governments in Australia are expected to spend about AUS$6.5 billion on ICT this year. The AIIA hopes this study will encourage the government, as the single largest ICT customer in Australia, to make it easier for companies to grow and develop whilst also saving taxpayer money.
The full AII report can be found here.
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