The newly released 2001-02 Industry Development Progress Report is another black mark against the Minister for Information Technology, Senator Richard Alston, for his failure to ensure IT Outsourcing industry development commitments are met.
The report, released several months late, shows that the Government’s industry development requirements are a sham, as none of the multinational prime contractors for the five big Government IT outsourcing contracts met all of their contractual obligations to the local industry.
For example, IBM GSA has been a particularly poor performer – failing three out of ten out-of-scope requirements, and failing to provide data on a fourth.
These breaches have had adverse impacts on three Australian ICT small businesses, with the report noting that one of those businesses subsequently became “under external administration”.
The only response from the Department for Communications IT and the Arts to these and other breaches (detailed below) has been to discuss the issues with the offending parties – not even a slap on the wrist, let alone any meaningful sanctions.
In the past, the only response from the Minister to these breaches has been to suggest that these requirements should be watered down! This is despite the fact that the industry development requirements contained in these contracts are far from onerous.
That the Minister hasn’t acted when these were not met is just another indication that he has no serious commitment in ICT industry development.
I call on the Coalition to ensure that outsourcers deliver on their industry development commitments in full.
The development of Australia’s ICT industry will translate to the creation of high skill, high wage jobs in this country.
Click here for the 2001-02 Industry Development Progress Report
Media contact: Adina Cirson ‑ (02) 6277 3334 or Electorate Office ‑ 0418 488 295.
