Australian industry development in the information technology and communications sector is being stifled by the Coalition’s IT Outsourcing Program, Senator Kate Lundy and Dr Carmen Lawrence said today.
“The Office of Asset Sales and Information Technology Outsourcing (OASITO) Annual Report 1999-2000 reveals that only 30% of the outsourcing contracts went to Australian small to medium enterprises (SMEs),” Senator Lundy said.
“This means that 70% of the outsourcing contracts are going directly to US multinationals.
“These contracts cover everything from desktop computers to mainframe computers and their size and structure is designed so that smaller innovative Australian IT companies are effectively locked out from tendering,” Senator Lundy said.
“Efforts by the Coalition to promote the industry development aspect of IT outsourcing were slammed by the Audit Office,” Dr Lawrence said.
“The Australian National Audit Office (ANAO), in their report Implementation of Whole-of-Government Information Technology Infrastructure Consolidation and Outsourcing Initiative, confirmed that, in some cases, industry development benchmarks were not being met in the IT Outsourcing Program.
“The ANAO report, tested the performance of three outsourcing vendors (CSC, EDS and Advantra) and found that Advantra alone had failed to involve Australian SMEs to the specified levels.
“US multinationals have, to date, secured all of the largest outsourcing contracts.
“EDS, CSC and IBM were awarded contracts worth over $1 billion.
“Given that 70% of outsourcing contracts are going to US multinationals, Minister Fahey’s claim that the interests of the Australian IT industry are being pursued must be treated with contempt,” Dr Lawrence said.
82/00 Contact: Simon Tatz on 02-6277 3334 or Patrick Bindon on 02-6277 4181
