Despite the Government’s rhetoric about supporting Australian IT companies, there is now proof that the IT outsourcing program as it is currently structured allows Australian sub-contractors to be abused by IT vendors seeking to reduce costs, Senator Kate Lundy said today.
During senate question time, Senator Lundy asked Minister Alston why Wizard Computer Training, a local Australian company, has been shut out by Advantra in the Group 5 contract despite their presence as an Australian partner having helped Advantra satisfy Industry Development requirements.
“It seems Advantra waited until after their successful bid for Group 5 was announced before they delivered an ultimatum to Wizard Computer Training to accept a lower price or else lose their contract.
“Wizard Computer Training entered into partnership with Advantra in good faith, but have been subject to an appalling abuse of process, with Advantra having now employed their own contractors at Wizard Computer Training’s expense.
“The Industry Development aspects of the IT outsourcing program is the responsibility of Senator Alston, who has so far failed to support Wizard Computer Training in the face of what appears to be a clear breach of the Industry Development requirements of the Group 5 contract.
“Now is the chance for Minister Alston to demonstrate his support for Australian IT companies, enforce the Industry Development contractual commitments and insist Advantra reinstate Wizard Computer Training under the original terms.
“The Government’s rhetoric about ‘building our IT strengths’, which Senator Ellison parroted in question time yesterday, is without substance or credibility.
“The credibility of the IT outsourcing program has plummeted as evidence about lack of savings, failure to achieve service level agreements, and marginalisation of local companies is growing”, Senator Lundy said.
Contact: Simon Tatz on 02-6277 3334 or 0418 488295
