The Australian government plans to invest $10 billion in information technology developments during the 2016-2017 financial year, as officials seek to reduce spending in other aspects, according to Digital Transformation Minister Angus Taylor.
Taylor noted that the increased spending represents the government’s pursuit of upgrading the country’s IT infrastructure, following years of not spending enough for upgrades.
Better Public Service
Among the major projects under the reinvestment programme include a new welfare payments system and “enterprise resource planning” (ERP) of the Defence Department, according to Taylor. An upgrade of IT systems used in the public service sector will also prevent significant downtimes due to ageing equipment and technology.
The amount of investment, however, drew scepticism, especially amid a budget deficit. Still, Taylor believes that an effective central oversight and the necessary approvals will allow the government to move forward. Aside from this, the investment will seek to include more smaller-sized Australian businesses in the procurement process for clinching contracts, including remote DBA support services from providers like DBA Services.
Smaller businesses in the information and communication technology sector are expected to capture a larger slice of the market if the government’s strategy happens according to plan.
Whenever big-ticket investment plans are made, cost-efficient alternatives for public-sector IT resources naturally come into mind. This issue is not only common in Australia, but also in other countries such as the U.K. Third-party service providers are an option for reducing costs, while maintaining smooth operations. Even private businesses can use this tactic since these IT providers can often do the work at a fraction of a cost compared to in-house teams.
IT investments become more important in the public and private sectors, amid the growing use of digital technologies for equipment and resources. For private businesses, how do you plan to reduce costs without sacrificing good results?