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, headed by Sir Peter Gershon. Following extensive consultation with members across the industry, AIIA will today release a formal response to the review.
“Sir Peter has produced a thorough report based on strong industry consultation,” said AIIA Chair John Grant. “While most of the issues raised in the report represent long-term industry concerns – such as skills, procurement, intellectual property, contractual frameworks, and governance – past approaches on these issues have been made through silos framed by the model of federated agency autonomy,” Mr Grant continued.
“The difference with the Gershon Review is that it 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.”
The ICT industry as a whole applauds the objectives of the review, although a number of concerns surround individual recommendations and the path to implementation. AIIA 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.
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, 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. These issues have been a frustration to industry for many years.
AIIA members have also strongly endorsed the recommendation that a whole-of-government career structure and strategic ICT workforce plan be developed. As a large and intensive ICT user with unique requirements, 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, something that AIIA has been advocating for a number of years. In particular, 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.
Recommendations on Environment Product Efficiency Assessment Tool (EPEAT) will be highly valued by responsible brands seeking to supply hardware to government. 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.
Measures to consolidate government technology markets should, as the report suggests, be approached cautiously; their success in delivering the best outcomes will depend on striking a careful balance. 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 ICT industry would not support a model that excludes or limits participation of our innovative SME sector.
There are good indications in the review that the key concerns of SMEs have been heard and will be better addressed going forward – an area that has been one of the primary issues identified by industry in response to the report. Other major surround cuts to business as usual operating budgets, contractors and the overall implementation of the report.
“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,” commented Mr 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,” he concluded. “The absence of a specific recommendation proposing sustained implementation funding – currently estimated at $10 million – is problematic.”
These issues are a high priority for AIIA, reflected in the establishment of a Gershon Engagement Team, drawn from the AIIA board and senior industry representatives. The Gershon Engagement Team seeks to establish an active and constructive engagement with government to ensure successful implementation of the recommendations that are finally adopted by Cabinet. The Association is also currently working with our UK affiliate – Intellect – to learn from experiences with the implementation of Sir Peter’s UK efficiency report that apply to the Australian context.
AIIA’s response to the Gershon Review is available from www.aiia.com.au
For more information, contact:
Rhett Somers
Australian Information Industry Association
Mobile: 0411 670 007
r.somers@aiia.com.au