AIIA Cautiously Welcomes Gershon Report

By Greg McNevin

November 6, 2008: The Australian Information Industry Association (AIIA) is cautiously welcoming the public release of the independent Review of the Australian Government's Use of Information and Communication Technology, saying that productivity gains via ICT are possible, but political will is needed to bring about change.

Headed by Sir Peter Gershon, the report underwent extensively consultation with members across the industry, and according to AIIA Chain, John Grant, most of the issues it raises represent long-term industry concerns. These include skills, procurement, intellectual property, contractual frameworks, and governance.

Grant says that past approaches on these issues have been made through silos framed by the model of federated agency autonomy, however, the Gershon Review “brings them all together as a whole-of-government agenda.”

“This approach has the potential to realise significant productivity gains and reflects an understanding of ICT’s capacity to drive transformation across government activity, and its success will depend on the commitment and will of political leadership to bring about change,” sais Grant.

The AIIA says that ICT industry as a whole applauds the objectives of the review, and it is particularly pleased to see recognition of the need for a whole-of-government approach to ICT issues at the top levels of government, as well as the report’s attention to the pervasive issues of cultural change, leadership and skills.

That said, the Association notes that a number of concerns exists surrounding individual recommendations and the path to implementation.

The AIIA says that the proposed establishment of a Ministerial Committee on ICT, a Secretaries’ ICT Governance Board and the redefinition of AGIMO’s role are at the heart of the review and form the foundations for its success. Implemented well, the Association claims these initiatives would create an important ‘line of sight’ between policy developments and ICT projects, focus on business rather than technical issues at the highest levels, and develop more consistent methodology and policy implementation across multiple agencies. The AIIA notes that these issues have been a frustration to industry for many years.

The Association says that its members have also strongly endorsed the recommendation that a whole-of-government career structure and strategic ICT workforce plan be developed, as competitive employment practices will be essential to realising a productive relationship with industry that delivers the best outcomes to the Australian community.

The ICT industry also supports the development of a whole-of-government sustainability plan, with the AIIA noting that procurement based on cost alone is an outdated concept, and a coordinated approach across Australia’s largest technology marketplace will be essential to the development of the government’s overall strategy for the transition to a low carbon economy.

Furthermore, the Association says that recommendations on Environment Product Efficiency Assessment Tool (EPEAT) will be highly valued by responsible brands seeking to supply hardware to government. This coupled with voluntary energy performance standards for industry, the adoption of mandated EPEAT standards will send a strong signal on the acceptable design and performance standards of computer products.

When it comes to measures to consolidate government technology markets, the AIIA agrees with the report that these be approached cautiously. It says that multiple government markets – with the associated costs of multiple tenders and navigating different bureaucracies – are a cause of frustration and lead to poor outcomes across the board. The Association says that the ICT industry would not support a model that excludes or limits participation of our innovative SME sector.

There is little chance of this, however, as there are good indications in the review that the key concerns of SMEs have been heard and will be better addressed.

“Clearly, industry is concerned about the recommendations to cut recurrent technology spending by up to $400M per year, particularly in the wake of the global credit crisis. Significant reforms such as those outlined in the report require investment, not cuts, if they are to be realised,” said Grant.

“There is also industry concern that the proposal to cut contractor numbers by 50% over two years may be an overly blunt instrument. There is a significant discrepancy in the ability of individual agencies to manage their ICT and their workforce – perhaps it would be appropriate that agencies with demonstrated competency retain the ability to determine how best to resource their ICT requirements.”

“To achieve the overall objective – which is about building efficient government through sound application of ICT – these recommendations are well placed,” Mr Grant said. “It is important to note that improving the management, control and skills associated with the use of ICT in government will require a serious investment and strong ongoing leadership.”

“The absence of a specific recommendation proposing sustained implementation funding – currently estimated at $10 million – is problematic.”

The AIIA says that these issues are a high priority, and are reflected in the establishment of a Gershon Engagement Team, drawn from the AIIA board and senior industry representatives.

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