Canberra has been abuzz in ICT circles ever since the Gerson Report into ICT in the federal government arena was announced. Sir Peter Gershon in 2003 conducted a review into teh UK Public Sector so many in Australia eagerly awaited his review of ICT.
The perception going into the review was that there is massive decentralisation of ICT in government, poor ICT outcomes and the need to strengthen whole of government management of ICT to improve efficiencies and services. However it is important to note that the review was conducted prior to the current economic and financial crisis and the ICT market in Canberra is in the midst of a slow cyclical period. As reported by Intermedium:
“Even before the economy slowed, Government ICT spending slowed as agencies took a conservative approach to procurement in the lead-up to the Federal election. Earlier this year, the impact of a number of Government measures, especially the blunt application of a 2% efficiency dividend on agency spending, began to bite in the ICT market.
The current downturn in ICT spending by the Federal Government does not reflect the economic downturn, but rather the coincidence of three cycles that uniquely affect the public sector: a change of Government (the political cycle); the first year after an election (the electoral cycle); and seasonal spending patterns (the budget cycle). However, what is worrying is that this has occurred as Australia begins to face the full force of the global financial crisis”.
The Gershon Report has been released (Oct 2008) prior to formal comment or acceptance by Cabinet. Many in the industry are trying to unpack the implications of these recommendations for their business to work out whether this is good or bad news. Has the Grinch just stolen Christmas or are there many opportunities to be found under the ICT tree in the post Gershon Review phase?
Here is a snapshot of the recommendations:
- Strengthen Pan-Government Governance - establishment of a ministerial committee on ICT
- Strengthen Agency Governance - improve agency capability
- Tighten Management of ICT Business as Usual (BAU) Funding - increase development funding compared to BAU
- Enhance Management of Australian Public Service (APS) ICT skills base - create career structure including training and development
- Develop Data Centre Strategy
- Improve Efficiency and Effectiveness of ICT Market place
- Develop Whole of Government Sustainability Plan
So is this good news or bad news for the ICT industry? Well it depends. All change is good change so the focus on streamlining process and a whole of government approach may be viewed as a positive step towards making it easier to do business with government. Also the funding of development projects and building capability in ICT is certainly welcome. The question is, how long will it take to have approval for these recommendations and what will be the priorities of the federal government? •
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