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Posts Tagged ‘parliament’
Enterprise IT, Featured, News - Tuesday, February 25, 2014 14:14 - 17 Comments
news The Victorian Department of Human Services has reportedly investigated handing the re-development of its troubled client and case management system to an offshore provider in the popular IT outsourcing country of India, in one of the first signals that the state recognises the unsustainable nature of its current onshored resources.
In November 2011, Victoria’s Ombudsman has handed down one of the most damning assessments of public sector IT project governance in Australia’s history, noting total cost over-runs of $1.44 billion, extensive delays and a general failure to actually deliver on stated aims in 10 major IT projects carried out by the state over the past half-decade.
One of those projects was the development of a new Client Relationship Information System (CRIS) for the Department of Human Services, which had ballooned in cost from $22 million to $70 million. More recent estimates have placed the blowout related to the development of the system at around $100 million.
In the days following the report, various options were publicly discussed as to how the state could start to resolve its problems. One of those options, highlighted by Peter Carr, the managing director of Queensland-based analyst firm Longhaus, was for the state to realise that it was unlikely that enough skilled labor existed for state governments to competently run their own on-shore IT service delivery centres at cost levels which they can afford to pay.
In the view of Carr, the state needed to increasingly look to the private sector to source its IT project and service delivery needs.
Victoria has indeed started pursuing this aim, initially through seeking to outsource the core services currently being provided internally by IT shared services division CenITex. However, up until now the state — like every other state and Federal Government around Australia — has been reluctant to follow the private sector and make use of offshored IT resources, due to issues with data sovereignty and the sensitivity of giving foreign nationals access to data on Australian citizens. Continue…
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