$900 Million Government Digital Transformation

POSTED ON March 20, 2017 @ 12:01 pm

The federal assistant minister Angus Taylor for digital transformation are looking to spend $900 million each year on new entrepreneurial tech suppliers, moving away from traditional suppliers such as IBM.

If the government want to transform digital sector in Australia they need to be more robust at being a better customer. $9 billion is spent each year in public sector technology mainly dominated by IBM and HP, so now the time has come to give smaller tech providers a chance to prosper when achievable. This will be a great time for investment in innovation throughout Australia

Technology work in the public sector, worth $9 billion a year, is traditionally dominated by big consulting firms or large companies such as IBM, as in the case of the census, and HP, as in the case of the Australian Taxation Office. Taylor said that the time has come now to give smaller tech providers a go and that the government aimed to spend 10% more of its tech budget on small-to-medium technology providers “as soon as reasonably achievable”.

He added that funnelling 10% of a $9 billion tech budget to entrepreneurial tech companies would be “probably the biggest investment in innovation in this country’s history”.

We need to allow small companies access to government tech projects in the digital marketplace rather than having a preselected list of preferred suppliers this will allow the government to be able to deal with them easier than trying to mitigate through a large company process.

“Over the last 4 decades the federal government has outsource technology with the amount being spent at eye-watering levels.


Original Source: Business Insider