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Reckless IT outsourcing promises come back to haunt Coalition.



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Senator Kate Lundy Senator for the Australian Capital Territory Shadow Minister for Information Technology and Sport

Reckless IT outsourcing promises come back to haunt Coalition

Today’s Department of Veterans’ Affairs IT outsourcing blow-out is more compelling evidence that the Howard Government has no idea how to manage its information technology requirements, the Shadow Minister for Information Technology, Senator Kate Lundy said tonight.

“The legacy of the Coalition’s IT outsourcing program of the last six years is beginning to come back to haunt the Government as taxpayers discover its true cost,” Senator Lundy said.

“The fact is that five years ago the Howard Government jumped on the outsourcing bandwagon, shamelessly promising savings that by and large, have never eventuated. In this case, the promised savings of $20 million, which the Government was keen to announce at the time, have evaporated, and the final cost of $140 million was more than double the estimated costs of the contract of $65 million.

“The reality of IT contracts is that costs go up; and this blow-out demonstrates that the government has been irresponsible in promising the savings it did,” Senator Lundy said.

“The blow-out in the cost of the DVA IT outsourcing arrangement demonstrates that the Howard Government never had the faintest notion of the enormity of the challenges of the strategic management of information and the technology behind it.

“The Government should now come clean so that taxpayers know what other IT outsourcing blow-outs are in store for them,” Senator Lundy concluded

6 May 2002. Media contact: Jason Ives on 6277 3334 or 0418 488 295