Upload
buicong
View
217
Download
0
Embed Size (px)
Citation preview
Review of the austRalian goveRnment’s use of infoRmation and communication technology
sir Peter gershon cBe fReng
August 2008
Review of the austRalian goveRnment’s use of infoRmation and communication technology
sir Peter gershon cBe fReng
August 2008
© Commonwealth of Australia 2008
ISBN 1921 1825 87 3 print
ISBN 1921 1829 03 online
Department of Finance and Deregulation
The Australian Government Information Management Office
This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries concerning reproduction and rights should be addressed to the
Commonwealth Copyright Administration Attorney General’s Department Robert Garran Offices National Circuit Barton ACT 2600
or posted at http://www.ag.gov.au/cca
iii
CABINET-IN-CONFIDENCE
REVIEW OF THE AUSTRALIAN GOVERNMENT’S USE OF INFORMATION AND COMMUNICATION TECHNOLOGY
CABINET-IN-CONFIDENCE ii
The Hon. Lindsay Tanner Minister for Finance and Deregulation Parliament House CANBERRA ACT 2600
Dear Minister
I have now concluded the Review of the Australian Government’s use of Information and Communication Technology (ICT) which you invited me to undertake on behalf of the Government on 25 March 2008, and attach my report for your consideration. The terms of reference asked me, amongst a number of issues, to review and report on both the efficiency and effectiveness of the Australian Government’s current use of ICT, to determine whether the Government is realising the greatest return from its investments in ICT, and to examine whether the right institutional arrangements are in place to maximise the return.
This report is the outcome of a process in which I have sought to (i) gather a substantial body of evidence to understand how ICT is currently used and managed; (ii) analyse the evidence to identify significant issues; and (iii) produce recommendations which will address these issues. This has involved engagement with the Prime Minister, Ministers, across government, and with industry and other interested bodies. During this process, 112 submissions were received, 63 meetings held, 3 visits made, and 1 large and 2 small surveys conducted.
The outputs of the review provide a snapshot of the current state of ICT in the Australian Government.
At the heart of my findings is a conclusion that, not withstanding the work undertaken to date, the current model of weak governance of ICT at a whole-of-government level and very high levels of agency autonomy, characterised by an ability to self-approve opt-ins to existing whole-of-government ICT arrangements, leads to sub-optimal outcomes in the context of prevailing external trends, financial returns, and the aims and objectives of this Government. While ICT has undoubtedly benefited government administration and the delivery of key public services, I have also found that benefits realisation and the measurement of benefits arising from investments in ICT are areas where there is substantial scope for improvement, together with measuring and improving the efficiency of current ICT operations.
My recommendations involve a major program of both administrative reform of, and cultural change from, a status quo where agency autonomy is a longstanding characteristic of the Australian Public Service. Based on my experience of creating sustainable change in the United Kingdom public sector environment, there are two
iv
CABINET-IN-CONFIDENCE
critical requirements which will determine the success of this reform program: firstly, sustained leadership and drive at Ministerial and top official levels and, secondly, ensuring the enablers of change are properly resourced, not only in funding terms but also with skills of the right calibre.
Given these two requirements are met, I am confident that the recommended actions and changes can be successfully implemented over the next two to three years and deliver substantial benefits to the Australian Government.
Thank you for the opportunity to lead such a stimulating and challenging review. I would like to pay tribute to my team of agency and AGIMO secondees whose commitment, contribution, professionalism and support made it possible to undertake an exercise of this complexity and size in a tight time frame.
Sir Peter Gershon CBE FREng 28 August 2008
CABINET-IN-CONFIDENCE iii
Contents v
GLOSSARY OF ABBREVIATIONS VIII
EXECUTIVE SUMMARY 1
Introduction/Context 1
Methodology 1
Keyfindings 2
Summaryofkeyrecommendations 3
Implementation 4
Acknowledgements 6
INTRODUCTION 7
CHAPTER 1: VIEWS FROM WITHIN THE AUSTRALIAN GOVERNMENT 13
1.1. ICTinvestmentdecisionmaking 13
1.2. Projectdelivery 15
1.3. Organisationalcapability 18
1.4. People 19
1.5. ManagingICTspend 20
1.6. ProcurementandICToutsourcing 22
1.7. Useofbestpractice 23
1.8. Viewsonexistingwhole-of-governmentarrangements 27
1.9. Viewsondatacentres 29
1.10. ViewsontheICTindustry 30
1.11. ICTarrangementsinministerialoffices 30
CHAPTER 2: VIEWS FROM OUTSIDE THE AUSTRALIAN GOVERNMENT 31
2.1. BetterutilisationofICTassets 31
2.2. Sharedservices 34
2.3. Standardised/coordinatedapproachtoprocurement 35
2.4. Useofcommercialoff-the-shelfsolutions 35
2.5. Needforstandardisation 36
2.6. Whole-of-governmentgovernance 36
2.7. Highcostsoftendering 37
2.8. TheAustralianGovernmentcomparedtoothergovernments 39
contents
Contentsvi
2.9. Skillsshortage 39
2.10. GreenICT 40
2.11. Securityclearances 41
2.12. Bestpractices 41
CHAPTER 3: SUMMARY OF SURVEY FINDINGS 45
3.1. Surveyapproach 45
3.2. Surveyresults 45
CHAPTER 4: KEY FINDINGS 55
4.1. Weakgovernanceofpan-governmentissuesrelatedtoICT 55
4.2. AgencygovernancemechanismsareweakinrespectoffocusonICTefficiency
andunderstandingoforganisationalcapabilitytocommission,manageand
realisebenefitsfromICT-enabledprojects 57
4.3. ThebusinessasusualICTfundinginagenciesisnotsubjecttosufficient
challengeandscrutiny 58
4.4. DisconnectbetweenthestatedimportanceofICTandactionsinrelationto
ICTskills 58
4.5. Thereisnowhole-of-governmentstrategicplanfordatacentres.Intheabsence
ofsuchaplan,thegovernmentwillbeforcedintoaseriesofadhocinvestments
whichwill,intotal,costsignificantlymorethanacoordinatedapproach 60
4.6. TheGovernmentICTmarketplaceisneitherefficientnoreffective 61
4.7. ThereisasignificantdisconnectbetweentheGovernment’soverallsustainability
agendaanditsabilitytounderstandandmanageenergycostsandthecarbon
footprintofitsICTestate 61
CHAPTER 5: RECOMMENDATIONS 63
5.1. Recommendation1–Strengthenpan-governmentgovernance 63
5.2. Recommendation2–StrengthenAgencyGovernance 66
5.3. Recommendation3–TightenthemanagementofICTbusinessasusualfunding 68
5.4. Recommendation4–EnhancethemanagementoftheAPSICTskillsbase 70
5.5. Recommendation5–DataCentres 72
5.6. Recommendation6–Improvetheefficiencyandeffectivenessofthe
ICTmarketplace 73
5.7. Recommendation7–SustainabilityofICT 75
CHAPTER 6: IMPLEMENTATION 77
Contents vii
APPENDICES 87
A TermsofReference 87
B Submissionquestions 89
C Surveyinstrument 92
D Submissionsreceived 95
E Consultations 99
F AgencieswithICTspendover$20millionin2007–08 102
G AgencieswithICTspend$2millionto$20millionin2007–08 103
H Candidatesforwhole-ofgovernmentapproaches 104
I Proposedcriteriaforwhole-of-governmentapproachesandarrangements
subjecttoopt-out 105
J ProposedroleofAGIMO 106
K LinkagebetweenTermsofReferenceandRecommendations 107
L DetailsofICTReviewTeam 109
Glossaryviii
GLOSSARY OF ABBREVIATIONS
ABS AustralianBureauofStatistics
ACT AustralianCapitalTerritory
AGD Attorney-General’sDepartment
AGIMO AustralianGovernmentInformationManagementOffice
AIIA AustralianInformationIndustryAssociation
ANAO AustralianNationalAuditOffice
APS AustralianPublicService
APSC AustralianPublicServiceCommission
ATO AustralianTaxationOffice
BAU businessasusual
BPTC BusinessProcessTransformationCommittee
CEO ChiefExecutiveOfficer
CIO ChiefInformationOfficer
CIOC ChiefInformationOfficerCommittee
CIOF ChiefInformationOfficerForum
CMMI® CapabilityMaturityModelIntegration
COBIT® ControlObjectivesforInformationandRelatedTechnology
COTS commercialoff-the-shelf
Defence DepartmentofDefence
DEWHA DepartmentoftheEnvironment,Water,HeritageandtheArts
EPEAT™ ElectronicProductEnvironmentalAssessmentTool
Finance DepartmentofFinanceandDeregulation
FMAAct FinancialManagementandAccountabilityAct1997
FMIS financialmanagementinformationsystem
GMS grantsmanagementsystem
GOTS governmentoff-the-shelf
GTS GovernmentTechnologySurvey
HRMIS humanresourcemanagementinformationsystem
HR humanresources
HVAC heating,ventilationandair-conditioning
ICON IntraGovernmentCommunicationsNetwork
ICT informationandcommunicationtechnology
IP intellectualproperty
ITIL® InformationTechnologyInfrastructureLibrary
Glossary ix
MoG machineryofgovernment
NPP newpolicyproposal
OGC OfficeofGovernmentCommerce
PM&C DepartmentofthePrimeMinisterandCabinet
PMBOK® ProjectManagementBodyofKnowledge
PRINCE2™ ProjectsinControlledEnvironments
PSPC ProtectiveSecurityPolicyCommittee
PUE powerusageeffectiveness
SCICT Secretaries’CommitteeonICT
SIGB Secretaries’ICTGovernanceBoard
SME smallandmediumenterprise
SOA serviceorientedarchitecture
SRO SeniorResponsibleOfficial
Treasury DepartmentoftheTreasury
UK UnitedKingdom
US UnitedStates
XBRL® ExtensibleBusinessReportingLanguage
x
ExecutiveSummary �
EXECUTIVE SUMMARY
INTRODUCTION/CONTEXT
On11April2008,theMinisterforFinanceandDeregulation,theHon.LindsayTanner
MP,announcedmyappointmenttoleadareviewoftheAustralianGovernment’suseof
informationandcommunicationtechnology(ICT).
METHODOLOGY
InresponsetotheTermsofReference,Iemployedanevidence-basedapproachtothereview.
Therewasaneedtogainacomprehensiveunderstandingofthestatusquoinorderto
determinethescopefor,andidentifyareasof,improvementofefficiencyandeffectiveness.
Therehavebeenthreemainphasestothereview:
Evidence gathering:Iinvitedsubmissionsfromagencies,industryandotherkeystakeholders
ontheuseofICTwithingovernment.Intotal,112submissionswerereceived.Ialsoissueda
comprehensivesurveyto100Financial Management and Accountability Act 1997(FMAAct)
agenciesrequestingdataonICTexpenditure,withdetailedquestionsoncostsperdesktop,
websites,thetopologyandcostoftelecommunicationsnetworks,useofhumanresource
andfinancialmanagementinformationsystems,grantmanagementsystemsandenergy
consumption.Inaddition,twosmallsurveyswereconducted.
Consultation: ThreevideoconferenceswereheldwithPortfolioSecretariesintheearlystages
ofthereview,followedbyaseriesofmeetingsinJulyandAugustwiththePrimeMinister,
Ministers,agencies,industryandotherstakeholders.Intotal,63meetingswereheld.In
addition,threevisitsweremade,onetotheAustralianHighCommissioninLondonand
twotodatacentresinCanberra,tounderstandinmoredetailcertainpointsraisedbysome
submissionsandmeetings.
Analysis and reporting:Theevidence,supplementedbyadditionalinputssuchastheAustralian
BureauofStatistics2002–03GovernmentTechnologySurvey,wasanalysedtoidentifykey
findings.Recommendationswerethendevelopedtoaddresstheidentifiedfindingsand,finally,
thisreportwasproducedwithintherequestedtimeframe.
ExecutiveSummary�
KEY FINDINGS
Afterdetailedanalysisoftheevidence,thereviewidentifiedthefollowingkeyfindings.
1. Thereisweakgovernance1ofpan-governmentissuesrelatedtoICT.
2. AgencygovernancemechanismsareweakinrespectoftheirfocusonICTefficiencyandanunderstandingoforganisationalcapabilitytocommission,manageandrealisebenefitsfromICT-enabledprojects.
3. Thebusinessasusual(BAU)ICTfundinginagenciesisnotsubjecttosufficientchallengeandscrutiny.
4. ThereisadisconnectbetweenthestatedimportanceofICTandactionsinrelationtoICTskills.
5. Thereisnowhole-of-government2strategicplanfordatacentres.Intheabsenceofsuchaplan,theGovernmentwillbeforcedintoaseriesofadhocinvestmentswhichwill,intotal,costintheorderof$1billionmorethanacoordinatedapproachovera15-yearperiod.
6. ThegovernmentICTmarketplaceisneitherefficientnoreffective.
7. ThereisasignificantdisconnectbetweentheGovernment’soverallsustainabilityagendaanditsabilitytounderstandandmanageenergycostsandthecarbonfootprintofitsICTestate.
Attheheartofthesefindingsisaconclusionthatthecurrentmodelofveryhighlevelsofagencyautonomy,includingtheabilitytoself-approveopt-instowhole-of-governmentapproachesintheICTdomain,leadstosub-optimaloutcomesinthecontextofprevailingexternaltrends,financialreturns,andtheaimsandobjectivesofthecurrentGovernment.Theimpactofthisautonomyhasbeenheightenedbyapreviouslackofstrongfocusonwhole-of-governmentICTissuesatbothMinisterialandtopofficiallevels.Thisconclusionappliesnomatterhowwell-intentionedindividualagenciesareintheirpursuitofwhole-of-governmentoutcomes.
ThecurrentmodelofoperationisveryclosetotreatingFMAActagenciesasthoughtheywereindependentprivatesectorentities.Theagenciesare,however,verydifferentinanumberofaspects:theyarefundedbythetaxpayer,theycannotgobankrupt,theyhaveverylittleornothingofthe‘time=money’dynamicoftheprivatesector,andtheyhavenosimplebottomlineoutcomesagainstwhichtheirsuccessorfailurecanbemeasured.
AgainstthebackgroundoftheGovernment’sobjectivesandthepressurestoimproveefficiencyandeffectivenesswhereverpossible,IconsidersomerebalancingbetweenagencyautonomyandcoordinationacrossgovernmentisbothdesirableandnecessaryinmeasuresrelatedtoICT.SuchamoveisinlinewithtrendsintheUnitedKingdom(UK)andUnitedStates(US)Governments,aswellaslargeprivatesectororganisations.
1 ‘Governance is defined as the system by which the current and future use of IT is directed and controlled. It involves evaluating and directing the use of IT to support the organisation and monitoring this use to achieve plans. It includes the strategy and policies for using IT within an organisation’ (Source: AS 8015-2005 Corporate Governance of ICT). The generally accepted principles of public sector governance according to the Australian National Audit Office (ANAO) include accountability, transparency, integrity, stewardship, efficiency and leadership (Source: ANAO (July 2003), ‘Better practice guide: Public sector governance and the individual officer’).
2 In this report the term ‘whole-of-government’ is used to mean all government agencies or a significant subset of them where there is a common issue which is important but not universal to all agencies.
ExecutiveSummary �
SUMMARY OF KEY RECOMMENDATIONS
Thefollowingcomprisetheprimaryrecommendationsofthisreview.Thecompletelistof
mydetailedrecommendationsisfoundatChapter5ofthisreport.Asummaryofhowthe
recommendationsmeettheTermsofReferencecanbefoundatAppendixK.
Governance
•EstablishaMinisterialCommitteeonICTtoberesponsibleforthekeywhole-of-government
ICTpoliciesandtheoverallstrategicvisionforhowICTshouldsupporttheachievementofthe
Government’soutcomesandwiderpolicyagenda.
•CreateaSecretaries’ICTGovernanceBoard(SIGB)withastrongmandatefromthe
Governmenttodrivetheagreedrecommendationsarisingfromthereviewandfocus
onaddressingthekeybusinessissuestoimprovetheefficiencyandeffectivenessofthe
Government’suseofICT.
•Allowagenciestoobtainopt-outs,basedongenuinebusinessneed,fromagreedwhole-of-
governmentactivities.Opt-outstobeapprovedbytheMinisterialCommittee,informedby
theSIGB.
Capability
•Improveagencycapabilitytocommission,manageandrealisethebenefitsfromICT-enabled
projectsthroughtheimplementationofacommonmethodologyforassessingagency
capabilitybasedonself-assessmentandperiodicindependentaudit.EachagencyChief
Executivetoproposeatargetlevelofcapabilitybasedontheiragency’sandtheGovernment’s
strategicpriorities,andforthistobeindependentlyvalidated.Agenciestodevelopacapability
improvementplanwithcommitment,andagreedactions,toaddressidentifiedgaps.
ICT spend
•TargettomovetotalFMAActagencyICTspendfromanaverage77:23%splitbetweenICT
BAUactivitiesandcreationofnewcapabilityin2007–08toanaverage70:30%in2011–12.
•Asinitialstepstowardsthisgoal,reducetheICTBAUbudgetsofthelargest28FMAAct
agencies(Defenceexcluded)withICTspendsinexcessof$20millionperannumby15%from
2007–08actuals(foralistofagenciesrefertoAppendixF),withaphasedintroductionover
twoyears.
•CreateICTReviewTeamstohelptheseagenciesachieveorexceedthetargetreductions
withoutimpairingservicedeliverytocitizensandbusiness.
•Inaddition,IrecommendtargetingagencieswithtotalannualICTspendsbetween$2million
and$20milliontoachievea7.5%reductiononaverageoftheirBAUfrom2007–08actuals
(foralistofagenciesrefertoAppendixG),withaphasedintroductionovertwoyears.
ExecutiveSummary�
•The15%and7.5%reductionsintotalshouldsavetheGovernmentaround$140millioninthe
firstyearandinexcessof$400millioninthesecondandsubsequentyears.Ialsorecommend
that50%ofthesavingsgeneratedbytheserecommendationsbetransferredtoacentralfund
forreinvestmentinprojectstoimproveefficiencyandeffectivenessofICTBAUactivities,such
asreplacementoflegacysoftwareandhardwarewithhighsupportandmaintenancecosts.
Skills
•Createawhole-of-governmentAustralianPublicService(APS)ICTcareerstructure,including
traininganddevelopmentprogramsforICTprofessionalsinkeyskillsareas.
•Developandmaintainawhole-of-governmentstrategicICTworkforceplan.
•ReducethetotalnumberofICTcontractorsinuseacrossFMAActagenciesby50%overa
2-yearperiodandincreasethenumberofAPSICTstaff.ThisshouldsavetheGovernmentan
estimated$100million(acrossbothBAUandproject-relatedwork).
Data centres
Developawhole-of-governmentapproachforfuturedatacentrerequirementsoverthenext
10–15years.
Sustainable ICT
Developawhole-of-governmentICTsustainabilityplan(inconjunctionwiththeDepartment
oftheEnvironment,Water,HeritageandtheArts)tomanagetheenergycostsandcarbon
footprintoftheGovernment’sICTactivities.
IMPLEMENTATION
Myrecommendationsentailamajorprogramofadministrativereformandculturalchange.
BasedonmyexperienceofcreatingsustainablechangeintheUKpublicsectortherearetwo
criticalrequirementswhichwilldeterminethesuccessoftheproposedprogram:first,sustained
leadershipanddriveatMinisterialandtopofficiallevels;second,ensuringtheenablersof
changeareproperlyresourcednotonlyinfundingterms,butalsoskillsoftherightcalibre.
TheearlydecisionsoftheMinisterialCommitteeandtheSIGBwillneedtosendoutclear
signalsaboutthepaceanddirectionofchangewhichisthenreinforcedthroughsubsequent
decisions.Itwillbeessentialtoensurethatagreedwhole-of-governmentICTapproachesand
arrangementsare‘fitforpurpose’.
Thefollowingpagesetsoutaproposedimplementationplanforthekeyrecommendations
basedontheassumptionthattheGovernmentapprovesallmyrecommendationsin
November2008.
ExecutiveSummary �
CABINET-IN-CONFIDENCE
5 CABINET-IN-CONFIDENCE
Key recommendations
Sep-
08
Dec-
08
Mar-0
9
Jun-
09
Sep-
09
Dec-
09
Mar-1
0
Jun-
10
Sep-
10
Dec-
10
Mar-1
1
Jun-
11
Strengthen pan-government governance
Ministerial Committee on ICT
Secretaries’ ICT Governance Board
Whole-of-government opt-out criteria
Strengthen agency governance
Improve agency capability assessment
a. Capability methodology and conduct pilots
b. Capability methodology implementation across largeagencies
c. Large agencies propose target capability and develop capability improvement plan
Tighten the management of ICT business as usual funding
BAU ICT budgets
a. ICT Review Teams methodology and efficiency metrics
b. ICT Review Teams in agencies phase 1
c. ICT Review Teams in agencies phase 2
Enhance the management of the APS ICT skills base
ICT skills a. Whole-of-government ICT career structure
b. Whole-of-government ICT workforce plan
Reduce total APS contractors and increase the number of APS ICT staff
Examine current security vetting processes and identify best practice
Data centres Whole-of-government data centre strategy
Sustainability of ICT
Whole-of-government ICT sustainability plan
Enabling Ongoing
Implementation activities fall into two broad categories: those enabling activities which are one off and need to be undertaken at the beginning of or early in the implementation phase (e.g. the development of efficiency metrics), and those activities that are ongoing (e.g. the implementation and ongoing use of efficiency metrics). In most cases an ongoing activity is preceded by an enabling activity.
efficiency metrics), and those activities that are ongoing (e.g. the implementation and ongoing use of efficiency
is preceded by an enabling activity.Implementation activities fall into two broad categories: those enabling activities which are one off and need to be undertaken at the beginning of or early in the implementation phase (for example the development of efficiency metrics), and those activities that are ongoing (for example the implementation and ongoing use of efficiency metrics). In most cases an ongoing activity is preceded by an enabling activity.
ExecutiveSummary�
ACKNOWLEDGEMENTS
Iamextremelygratefultothosewhohavehelpedtomakethisreviewpossible.Inparticular,I
wouldliketothank:
•thePrimeMinisterandtheMinisterforFinanceandDeregulationfortheirinputandsupport
•Ministerswhogenerouslygavemetheirtimeandviewsandprovidedmewithagreater
understandingoftheiraimsandobjectivesandthewiderAustraliancontext
•theAustralianGovernmentInformationManagementOfficefortheprovisionoftalented
stafftotheReviewSecretariat
•Centrelink,theAustralianTaxationOfficeandtheDepartmentofEducation,Employment
andWorkplaceRelationsfortheprovisionofhigh-qualityagencysecondeestothereview
secretariat
•theDepartmentalSecretaries,AgencyChiefExecutiveOfficers,theAuditor-General,the
AustralianPublicServiceCommissioner,ChiefInformationOfficersandChiefFinancial
Officersoftheagenciesthatprovidedsubmissions,surveyresponsesandtheirtimetomeet
withme
•individualsandorganisationsoutsidetheGovernmentwhocontributedsubmissionstothe
review,andwhometwithmetodiscusstheirsubmissions
•thoseindividualsandorganisationsundertakingdiscretetasksinsupportofthereview
•theActingAustralianHighCommissionertotheUK,andAustradeinLondonfortheirhelp
andsupport
•mywife,whoputupwithmanyveryearlymorningandlatenightphonecallsIheldwiththe
reviewteaminAustralia,andmyextendedabsenceduringAugust.
Introduction �
INTRODUCTION
Informationandcommunicationtechnology(ICT)intheAustralianGovernment
(theGovernment)operateswithinabroadercontextandhencemusttakeintoaccountkey
macronationalandglobaltrends.Thesetrendsinclude:
•growingexpectationsamongcitizensandbusinessforthequalityofservicesdelivered
bygovernments
•increasingconcernsaboutclimatechange
•publicsectorfundingpressures
•technologytrends
•globalisation
•ICTworkforcechallenges.
Thesetrendswillcontinuetohaveanincreasinginfluenceontheapplication,delivery,costand
demandforICTservices.Theyshouldthereforebeconsideredinordertodevelopanenduring
whole-of-governmentstrategy.
Growing expectations among citizens and business for the quality of services delivered by governments
Citizensnowexpectgovernmentservicestobeasgoodasthoseprovidedbytheprivate
sector.AsDeloitte3commented,‘One-size-fits-allsolutionsrequiringcitizenstonavigatea
complexbureaucraticmazetoobtainservicessimplydonotcutitintoday’s“on-demand”
world.Restoringtheconfidenceofcitizensintheirpublicinstitutionsmeansdemonstrating
competenceincarryingoutthedifficulttaskofgovernanceinthe21stcenturyanddelivering
citizensbettervaluefortheirhard-earnedtaxdollars.’Therealityisthatcitizensview
governmentasawhole–theydonotwanttorepeatthesameinformationwhenaccessing
servicesfromdifferentagencies.Essentially,thiscallsforimprovedcollaboration,integration
andsharingofinformationbetweengovernmentagencies,keepinginmindprivacyandsecurity
considerations.
ArelativelyrecentsurveyofAustralians’useofandsatisfactionwithe-governmentservices4
showedthattheinternethasbecomeanindispensablechannelfordeliveringgovernment
servicestoAustralians;itsuseiscontinuingtogrowanditisnowthepreferredservicedelivery
channelforamajorityofpeople.Thesurveyreportalsohighlightedthecontinuingchallenges
3 Deloitte Touche Tohmatsu (2007), ‘One size fits few: Using customer insight to transform government’, http://www.deloitte.com/dtt/cda/doc/content/dtt_ps_onesizefitsfew_040908(1).pdf
4 Australian Government, Department of Finance and Deregulation (December 2007), ‘Australians’ use of and satisfaction with e-government services – 2007’, http://www.finance.gov.au/Publications/use-of-e-government-services-2007/docs/31576_AGIMO_Satisfaction-ALL.pdf
Introduction�
facingtheGovernmentindeliveringservicestotheAustralianpublic.Citizensaresayingthat
theyvalueconvenienceintheirinteractionswithagencies,althoughforsome,theadvantages
ofbeingabletodealdirectlywith‘real’peopleface-to-faceorbytelephonearepreferable.
Citizensarealsosayingtheywante-governmentservicesandgovernmentwebsitestobeeasier
tofindandtouse.
Butwhilecitizensaredemandingmorejoined-upgovernmentservices,theyalsowanttheir
informationtoremainsecureandtheirprivacyprotectedfromcybercrimeandidentityfraud.
ThechallengefortheGovernmentistomaintainthisdelicatebalanceofmakingtheprovision
ofintegratedservicesbothsecureandconvenientsoastobuildandmaintaintrust.
Increasing concerns about climate change
Societiesandgovernmentsarebecomingincreasinglyconcernedabouttheenvironment.
Governmentsarefacingpressuretodealwiththeeffectsofglobalwarming,aforeseeable
declineinfossilfuelsandgassupplies,andsteeplyrisingenergycosts.Asaresult,the‘greening’
ofgovernmentpoliciesistakingplacearoundtheworld.
ThecurrentGovernmentiscommittedtotakingactiontoreducetheimpactofclimate
change,byreducinggreenhousegasemissionsandbyrespondingtothepotentialimpacts
ofunavoidableclimatechange.TheGovernmentisconsideringintroducingacapandtrade
emissionstradingschemeby2010,andamandatoryrenewableenergytargetby2020.5
ThesechangeswillneedtobetakenintoaccountwhenanoverarchingICTstrategyisdeveloped
fortheGovernment.InApril2007GartnerestimatedthattheglobalICTindustryaccounted
for2%ofCO2emissions,onaparwiththeaviationindustry.6Gartneralsoestimatedthatlarge
organisationsspendbetween4%and10%oftheirtotalICTbudgetsonenergyandthatthis
numbermayquadrupleby2012duetothetwinfactorsofpower-hungryhardwareandrising
energycosts.7InAustralia,theAustralianComputerSocietyundertookanemissionsauditonthe
amountofcarbondioxidebeinggeneratedbyAustralianbusinesses’useofICT.Theresultsofthe
auditindicatedthatICTusebyAustralianbusinessesgenerated7.94milliontonnesofcarbon
dioxidein2005,equivalentto1.52%oftotalnationalcarbondioxideemissions.8
TheGovernmentwillbeunderincreasingpressuretoarticulateaviablestrategytomakeICT
environmentallysustainable.
5 See Australian Government (July 2008), ‘Carbon Pollution Reduction Scheme Green Paper summary’, http://www.climatechange.gov.au/greenpaper/summary/pubs/greenpaper-summary.pdf
6 Gartner Press Release (April 26, 2007), ‘Gartner estimates ICT industry accounts for 2 percent of global CO2 emissions’, http://www.gartner.com/it/page.jsp?id=503867
7 Gartner Press Release (November 7, 2006), ‘Gartner says look beyond power issue as pressure mounts for ‘greener’ IT’, http://www.gartner.com/it/page.jsp?id=498224
8 Australian Computer Society (August 2007), ‘Policy statement on green ICT’, http://www.acs.org.au/acs_policies/docs/2007/greenictpolicy.pdf
Introduction �
Public sector funding pressures
Effectsofanageingpopulation,globalcompetitionamongvariouseconomies,andclimate
changearecreating,andwillcontinuetoplace,pressureonpublicsectorbudgetstoincrease
spendinginareassuchashealth,educationandtransport.TheGovernmentmustfindwaysof
improvingtheefficiencyandeffectivenessofitsservicedelivery.Thismeansprovidingvaluefor
moneybyimprovingqualityofservice(accessibilityforallandacceptablecitizenexperiences
andoutcomes),andreducingthecostsinvolvedinserviceprovision.
Technology trends
Businesses,individualsandpublicinstitutionsareadoptingawidevarietyoftechnologiesand
tosuchanextentthattheyarechangingthewayeachentityfunctionsandrelatestoothers.
Governmentsingeneral,althoughmoreconservativeusersofsomenewertechnologies,
stillneedtobeawareofbroadertechnologytrendsandthepotentialimpactoftheseon
governmentpolicies,operationsandservicedelivery.
Forexample,theinternethasmovedtoWeb2.0,amoreinteractivemodelinwhichuser-
generatedcontentisfrontandcentre,andhasthepotentialtochangerelationshipswith
citizens,intermediariesandexternalserviceproviders,aswellasamonggovernmentagencies.
Governmentswillneedtoexploreandshifttothisnewparadigm.
Manyprivatesectororganisationshavealreadyembracedserviceorientedarchitecture(SOA),
whereICTassetsarealignedtobusinessservicesinastandard,flexibleandarchitectedfashion,
andalsothebenefitsthatcomewithitsuchasincreasedagility,re-useandreducedcosts.
GovernmentorganisationsareslowlymovingtowardsleveragingSOAinthedevelopmentoftheir
applications,butthereispotentialforthepacetobequickenedandforfurtherthinkingtodoneat
thewhole-of-governmentlevelratherthanagencyleveltomaximisethepotentialbenefits.
Advancesinprocessingpower,storageandmemorytechnologieshavepavedthewayformore
sophisticateduseofdataanalyticsandbusinessintelligencetechnologies.Governmentsare
alsousinggeospatialtechnologiesandresourcestooptimiseservicedeliveryandtoimprove
decisionmakinginareassuchascollectionandanalysisofintelligenceinformation,protection
ofcriticalinfrastructureandresponsetoemergencies.However,theexplosivegrowthof
data,compliancerequirementsandincreasinglycomplexbusinessenvironmentshavemade
informationstoragemanagementmorecriticalthanever.Governmentsneedtoensurethat
theyareabletomaintaincontrolovertheirabilitytostoreandmanagethiskeybusinessasset,
havingdueregardtoprivacyconcerns.
Introduction�0
Globalisation
Countriesandsocietiesarebecomingmoreeconomicallyinterdependentacrosssocial,political
andculturalboundaries.Thereisgreaterglobalmovementofgoodsandservices,labourand
people,capitalandtechnologyamongpreviouslyindependentandsovereignentities.
ThesetrendsneedtobeconsideredfromanICTperspective.Forexample,globalisationisenabling
largeemergingeconomieswithhighorincreasingeducationalstandards(suchasBrazil,Russia,
IndiaandChina)todrawactivityawayfromthedevelopedeconomies–oftendeliveringequivalent
servicesatafractionoftheprice.TheremaybewaysforICTtoharnesssomeofthesetrendsto
addressotherchallengessuchastheICTskillsshortage.ThepotentialforoutsourcingICT-related
activitiestolowercostcountrieswithhighlyskilledworkforcesisalreadybeingutilisedbymany
privatesectororganisationstoimprovetheircompetitiveness.Forgovernments,morecomplex
trade-offshavetobemadewhenconsideringwhetherICT-relatedactivitiesshouldbeundertaken
offshore.However,evenifpoliticalconsiderationslimittheactivitiestoonshorelocations,theremay
bescopefordeployinggovernmentICTworktoreinforceregionaleconomicdevelopmentpolicies.
ICT workforce challenges
Australia’sunemploymentrateatJuly2008was4.3%,andsomepartsofAustraliaare
experiencingevenlowerrates(forexample,theAustralianCapitalTerritoryhadan
unemploymentrateof2.7%inJuly2008).9Coupledwithanageingpopulation,thisrepresents
asignificantpolicyandresourcingchallengefortheGovernmentasamanagerofeconomic
growthandasalargeuserofskilledlabour.
AccordingtoareportpreparedfortheAustralianComputerSocietyandtheAustralian
InformationIndustryAssociation10,theAustralianICTindustryislookingatashortfallof14,000
jobsby2010,growingto25,000withinanother10years.ThereportalsowarnedthattheICT
skillsshortagewillcontinueatcurrentorworselevelsuntilatleast2012,andarguedthat
temporarymigrantvisasareonlyashort-termsolution.ThereportsaidthatAustraliamustact
quicklytoincreaselocalgraduatenumbersbyatleast12.5%ayearandreducethelossofICT
professionalstooverseasemployers.
SuchICTskillsshortageswillalsodrivetheneedforbettersharingofICTassetsacrossthe
wholeoftheGovernment.InadditiontogrowingitsownICTprofessionalsthroughtraining
anddevelopment,otheroptionsmayincludeemployingolderAustralians,attractingmore
femalestoacareerinICT,andpartneringwithacademicinstitutions.TheGovernmentwill
alsoneedtoconsiderstrategiestoensureithassufficientskilledICTprofessionalstomeetthe
demandsofserviceprovision.
9 http://www.abs.gov.au
10 Centre for Innovative Industry Research Inc. (August 2008), ‘The ICT skills forecast project. First report: Quantifying current and forecast ICT employment (Executive summary and contents)’, http://www.acs.org.au/attachments/ICTSkillsForecastingReportExecSummaryAug08.pdf
Introduction ��
The changed Australian political context
ThecurrentapproachtothegovernanceandmanagementofICTacrossFMAActagencies,
wheretheyhaveveryhighlevelsofautonomy(includingtheabilitytoself-approveopt-insto
whole-of-governmentapproachesintheICTdomain),mayhavebeenanappropriatemodelin
thecontextofthepreviousgovernment’sobjectivesandpolicies,andthetrendsofthe1990s
andearlypartsofthisdecade.However,therearenowadifferentsetofexternaltrendsand
mydiscussionswiththePrimeMinisterandsomeotherMembersofCabinethaveindicatedto
methatthereisnowaverydifferentpoliticalandpublicadministrationagendainwhichitis
appropriatetoconsiderwhetherthestatusquoisstillfitforpurpose.
��
Chapter One:ViewsfromwithintheAustralianGovernment ��
chaPteR �: views fRom within the austRalian goveRnmentThischaptersummarisesthekeythemesraisedinsubmissionsfromAustralianGovernment
agenciesandin24bilateralmeetingswithagencies.Atotalof41Financial Management and
Accountability Act 1997(FMAAct)agencieswereinvitedtomakesubmissionstothereview.
Theywereaskedaseriesofquestionsabout:
•thealignmentoftheirICTstrategytotheiroverallstrategicpriorities
•howtheymeasuredtheperformanceoftheirICTinvestments
•howtheymeasuredtheirorganisation’scapabilitytocommission,manageanddeliver
ICT-enabledprograms
•howtheymeasuredtheefficiencyandeffectivenessoftheirICTspend
•theirriskmanagementstrategies
•detailsofbestpracticesthatcouldbeshared
•theirviewsonexistingwhole-of-governmentICTarrangements.
Atotalof40agencysubmissionswerereceivedandreviewed.Fouragencies–theDepartment
ofthePrimeMinisterandCabinet(PM&C),theAustralianNationalAuditOffice(ANAO),the
DepartmentofFinanceandDeregulation(Finance)andtheDepartmentoftheTreasury(Treasury)
–wereaskedspecificquestionsrelatedtotheirrespectiveoversight/governanceroles.Accordingly,
percentagesraisedinthischapterdonotincludeconsiderationofPM&CandtheANAO,butdo
includeFinanceandTreasury,astheyalsoprovidedresponsesontheirICToperations.AppendixD
containsafulllistoftheagenciesthatmadeasubmissiontothereview.
1.1. ICT INVESTMENT DECISION MAKING
1.1.1. Prioritising investments
Thirty-fiveagenciesdetailedformalprocessesforprioritisingICTinvestmentatthe
organisationallevel,withonlythreeagenciesnotprovidinganydetails.Prioritiesareset
throughgovernancearrangements(35agencies),combinedinsomeinstanceswithbusiness
caseprocesses(10agencies)orbudgetmanagementprocesses(sixagencies).
Nineteenofthese35agencieswereabletodetailreasonablycomprehensiveprioritisation
techniquesorextensiveassessmentcriteriatorankcompetinginvestments,withsixagencies
activelygroupinginvestmentsintoprioritygroups.However,theother16agencieswereonly
abletodetailbasicprioritisationprocessesandcriteria.
Chapter One:ViewsfromwithintheAustralianGovernment��
Agenciescitedthefollowingcriteriausedwhenrankingcompetinginvestmentpriorities:
•alignmentwithgovernment,strategicandbusinesspriorities(30agencies)
•strategicimpact,value,benefitsandsavings(26agencies)
•risks(15agencies)
•resourcesandcapabilitytodeliver(13agencies)
•costsandavailablefunding(13agencies)
•alignmentwithexistingarchitecture(nineagencies)
•dependenciesandprerequisites(threeagencies)
•timeframe(twoagencies).
1.1.2. Alignment of ICT investments with strategic priorities
Thereviewobservedthatthereareveryfewframeworksinplaceatthewhole-of-government
levelforsettingprioritiesforICTinvestmentacrossportfolios.Thereisnoformalprocessby
whichagenciescanobtaininformationonICTactivitiesinotheragenciesbeforeinvestingin
ICT.Itwasalsonotedthatthetechnicalcapacityofthethreecentralagencies(Finance,PM&C
andTreasury)toassessandadviseonICTinvestmentproposalsisatfullstretchduringthe
budgetcycle.Thisresultsinfeedbackonindividualproposals,ratherthantakingawhole-of-
governmentapproachtoinvestment.
Furthermore,alongstandingfeaturenotedbyseveralagencyheadswasthatinvestmentin
ICTtosupportpolicydeliveryhas,insomeinstances,notbeenconsideredbeforeannouncing
policies.PolicymakersandMinistersarenotalwaysfullyawarethatinadequateconsideration
ofdeliveryimplicationsattheoutsetcanhavesignificantadverseimplicationsonthecostof
policydelivery.Therewassomelimitedevidenceofbestpractice,wherethoseresponsiblefor
deliveryweredeeplyinvolvedinthepolicyformulationprocess.
Attheorganisationallevel,32agencies(82%)notedthattheyensurealignmentofICT
investmentstostrategicprioritiesthroughformalplanningprocessesandgovernance
mechanisms.Agencystrategicprioritiesinclude:
•enhancingthecapabilityofstaff(14agencies)
•improvingorganisationaleffectivenessandefficiencytodeliverbetterservices(12agencies)
•increasingcommunityconfidence(10agencies)
•improvingcollaborationandengagement,andstrengtheningstakeholderrelationships
(nineagencies)
Chapter One:ViewsfromwithintheAustralianGovernment ��
•supportingeconomicdevelopment(sevenagencies)
•providingsoundandtimelyadvice(fiveagencies)
•deliveringgovernmentpolicy(fouragencies).
AgenciesreportedthatalignmentisfacilitatedthroughtheinfluenceofseniorICTexecutives
inagency-widegovernancearrangements.However,inonlyafewcasesdidagenciesindicate
thattheChiefInformationOfficer(CIO)isamemberoftheexecutiveteam.Onlytwoagencies
reportedthattheirICTgovernancestructuresareunderpinnedbyAS8015-2005Corporate
GovernanceofICT.Anadditionaltwoagencieseitherreferencedthestandardintheir
submissions,orstatedthattheyplantouseitinthefuture.
1.1.3. Future importance of ICT to government business
Acrosstheboard,agenciesreportedthatICTisafundamentalbusinessenablerandanintegral
partoftheiroperations.TherewasalsoaunanimousviewthatICTwillcontinuetoincrease
inimportance.Inparticular,agenciescommentedontheincreasingneedformorerobustand
agilesystemsto:
•meetrisingexpectationsfromcitizensandgovernment
•delivermoreefficientandeffectiveservicesandoperations
•harnessinformationandintelligence
•manageincreasedcomplexityintheregulatory,businessandpolicyenvironments.
Nineteenagenciessaidthattheyexpectthedemandforonlinetransactionalinteractionsto
continuetoincrease,withthesafeguardingofcitizens’informationanimportantconsideration.
Improvingthelevelofcollaborationandinformationsharingbetweenagenciesandother
externalorganisations(forexample,thetradeandinvestmentcommunity,agencieswithstrong
internationallinkssuchaspolicingandpatents)isanimperative(andachallenge)for15agencies.
1.2. PROJECT DELIVERY
Thereareseveralwhole-of-governmentinitiativesthatexamineandreportonthedeliveryof
majorgovernmentinvestmentprojectsandprograms,includingICT-enabledprojects.These
aretheGatewayReviews,ANAOauditactivities,andthePM&CCabinetImplementationUnit’s
TrafficLightReports.
GatewayReviewsassistFMAActagenciestoimprovethelikelihoodofsuccessfuldeliveryof
projectson-time,on-budgetandwiththeintendedbenefitsrealised.However,Iheardoneview
thatGatewayReviewrecommendationshave,insomecases,notbeenadopted.
Chapter One:ViewsfromwithintheAustralianGovernment��
TheANAOsubmissionhighlightedthatitsauditsofICT-enabledprojectsidentifiedareasfor
furtherimprovingthemanagementanduseofICT.Theseincludeensuringbusinesscases
includemeasuresofbothprojectsuccessandstandardisedcostingmethods.
MostagencyresponsesonhowtheymeasurewhethertheirICTinvestmentsweremeeting
theirplannedoutcomesfocusedonlyonnewICT-enabledprojects,ratherthanoninvestmentin
existingbusinessasusualactivities.Responsesrevealedthatmostagencieshaveformalprocesses
inplacefornewprojects,suchasaprojectmanagementframeworksorgovernancemechanisms.
1.2.1. Use of project management frameworks
MostagenciesusesomeformofprojectmanagementmethodologytomanagetheirICT
projects.Twenty-twoagencies(59%)usethePRINCE2™methodologyasthebasisoftheir
projectmanagementmethodology,withafurthertwoagenciesplanningtointroduce
PRINCE2™inthenearfuture.Additionally,fiveagenciesusetheProjectManagementBodyof
Knowledge(PMBOK®)tounderpintheirprojectmanagementmethodologies(fouragenciesare
usingPMBOK®intandemwithPRINCE2™),whileanothertwoagenciesplantoadoptPMBOK®.
1.2.2. Use of governance mechanisms
FiveagenciescitedtheirinvolvementinGatewayReviewsasagovernancemechanismfor
projectdelivery.Oneagencycitedtheuseofacross-agencyprojectboard,while15agencies
discussedtheiruseofinternalprojectboards.Tenagenciesnotedthattheirprojectsreceived
seniormanagementendorsement.
1.2.3. Risk management
Twenty-twoagenciesindicatedthattheirriskmanagementframeworkswerecompliant,
consistentwith,orbasedonAS/NZS4360:2004RiskManagement.
Nineagenciesnotedthattheirauditcommitteeswereresponsibleforoverseeingrisk
managementwithintheagency.Fouragencieshavecentralisedoversightofriskmanagement
withintheorganisationthroughenterpriseriskregisterstomanageagency-widerisks.
Agencieshavetakendifferentapproachestoembeddingriskmanagementwithintheir
operations,includingincorporatingriskmanagementwithintheirChiefExecutiveInstructions,
integratingriskmanagementwithintheirbusinessplanningandprojectmanagement,
applyingprojectmanagementmethodologiessuchasPRINCE2™,anddesignatinganagency
riskmanager.
Chapter One:ViewsfromwithintheAustralianGovernment ��
1.2.4. Benefits realisation plans
Twentyagenciesreportedsomeformofevaluationofbenefitsattheendoftheproject
comparedtothoseidentifiedintheprojectinitiationdocuments.Eightagenciesreported
thattheyarepreparingtointroduceformalbenefitsrealisationevaluationprocesses,while
fiveagenciesnotedthattheytrackbenefits,butdidnotofferevidenceofaformaldedicated
process.Twoagenciesdidnotdiscussbenefitsrealisation.
1.2.5. Evidence from recent ICT projects
Agencieswereaskedtoprovidedetailsoftheir5–10majorICT-enabledprojectsandhowthey
measuredtheirsuccessintermsofcost,time,specificationanddeliveryofanticipatedbenefits.
Agenciesprovideddetailsof193completedprojects.Table1.1detailsobservationsmade
regardingtheperformanceoftheseprojects.
Chapter One:ViewsfromwithintheAustralianGovernment��
CABINET-IN-CONFIDENCE
15 CABINET-IN-CONFIDENCE
Table 1.1 – Performance of 193 completed projects
COST TIME BENEFITS ACHIEVEMENT • 23% (45) were delivered over
budget
• 39% (74) were delivered under budget
• 13% (25) had no variance between estimated cost and actual cost
• 25% (49) were silent on the question
• 33% (64) were delivered over time
• 2% (3) were delivered before time
• 41% (80) had no variance between estimated time and actual time to delivery
• 24% (46) were silent on the question
• 44% (86) reported achievement of benefits but did not provide evidence of measurement
• Only 5% (10) reported actual measurement of benefits and compared anticipated benefits with actual benefits realised
• 45% (86) reported outcomes that were not measurable
• 6% (11) were silent on the question
Thirty four of the 193 projects recorded expenditure of more than $5 million. Table 1.2details observations made regarding the performance of these larger projects.
Table 1.2 – Performance of projects over $5 million
COST TIME BENEFITS ACHIEVEMENT • 12% (4) were delivered over budget
• 29% (10) were delivered under budget
• 9% (3) had no variance between estimated cost and actual cost
• 50% (17) were silent on the question
• 12% (4) were delivered over time
• No projects were delivered under time
• 38% (13) had no variance between estimated time and actual time to delivery
• 50% (17) were silent on the question
• 36% (12) reported achievement of benefits but did not provide evidence of measurement
• 11% (4) reported actual measurement of benefits and compared anticipated benefits with actual benefits realised
• 38% (13) reported achieving actual outcomes that were not measurable
• 15% (5) were silent on the question
1.3. ORGANISATIONAL CAPABILITY
The review asked agencies to provide details of how the capability of their organisation tocommission, manage and deliver successful ICT enabled programs is measured. It also askedagencies to provide an assessment of their current capability, and any plans to improve it.
1.3.1. Current assessment of capability
In responding to this question, only three agencies provided an assessment of theirorganisation’s overall capability, with the remaining agencies interpreting the question solelyas ICT capability, after being given an opportunity to reconsider their response. Six agenciesprovided a high assessment of their ICT capabilities, while 15 agencies stated that their ICT
1.3. ORGANISATIONAL CAPABILITY
Thereviewaskedagenciestoprovidedetailsofhowthecapabilityoftheirorganisationto
commission,manageanddeliversuccessfulICT-enabledprogramsismeasured.Italsoasked
agenciestoprovideanassessmentoftheircurrentcapability,andanyplanstoimproveit.
Table 1.1 – Performance of 193 completed projects
Table 1.2 – Performance of projects over $5 million
Chapter One:ViewsfromwithintheAustralianGovernment ��
1.3.1. Current assessment of capability
Inrespondingtothisquestion,onlythreeagenciesprovidedanassessmentoftheir
organisation’soverallcapability,withtheremainingagenciesinterpretingthequestionsolely
asICTcapability,afterbeinggivenanopportunitytoreconsidertheirresponse.Sixagencies
providedahighassessmentoftheirICTcapabilities,while15agenciesstatedthattheirICT
capabilitiesweremediumandeightsaidtheywerelow.Theremainingagenciesofferedno
assessmentofcapability.Intheabsenceofacommoncapabilityframework,agenciesuseda
rangeofpartialmeasurestomaketheseassessments.
1.3.2. Measurements of capability
SeventeenagenciesmeasuredtheircapabilitybywhetherICThadbeenabletodeliveragainst
thebusinessrequirementsinatimelymanner.Twenty-fiveagenciescitedtheirstrongproject
managementcapabilitiesasevidenceoftheirstrongcapabilities,whilefivepointedtostaffand
usersatisfactionsurveysasanindicatoroftheircapability.
Thereissomeusebyagenciesofformalassessmentframeworkstoassesscapability.Seven
agencieshaveusedtheSoftwareEngineeringInstitute’sCapabilityMaturityModelIntegration
(CMMI®)toassesscapabilityandafurtheragencyplanstouseCMMI®,butthesehavemainly
beeninformalinternalassessments.
Atotalof11agenciesreportedusingtheITGovernanceInstitute’sControlObjectivesfor
InformationandRelatedTechnology(COBIT®)maturitymodels,whichprovideamanagement
toolenablingbenchmarkingandtargetingofmaturitylevels.
EighteenagenciesreportedusingInformationTechnologyInfrastructureLibrary(ITIL®),whilea
furtherfouragenciesreportedthattheyareplanningtoadoptit.Onlyoneagencynotedthatit
hadundertakenanITIL®ProcessMaturityAssessment,conductedbyanexternalprovider.
Oneagencyobservedthatthereisnoevidencethatcurrentinvestmentapprovalprocesses
includeanyrigorousandobjectivemethodologyforassessingtheorganisationalcapabilityof
anagencyseekingfundingforICT-enabledprojectsduringthebudgetprocess.Equally,thereis
noassessmentofthelikelihoodofdeliveringprojectoutcomes.
1.4. PEOPLE
TwelveagenciescommentedontheadverseimpactofICTskillsshortages,bothinsubmissions
andduringbilateralmeetings.ThereisgeneralagreementamongtheseagenciesthatICTskills
shortagesarewidespread,andthatanagency’sabilitytoattractandretainhighlyskilledand
motivatedpeoplehasasignificantimpactonbothefficiencyandeffectiveness,althoughfive
agenciesobservedthattheyarenotexperiencingcurrentpressurefromshortages.
Chapter One:ViewsfromwithintheAustralianGovernment�0
Thoseagenciesthatreportedanadverseimpactoftheskillsshortagesdiscusseditintermsof
itseffectonagencycapability.SomeagenciesnotedthatbothBAUandproject-relatedactivity
wereatrisk.Oneagencyalsonotedthatitssupplierswereconstrainedintheirabilitytoservice
contracts,asaresultoftheskillsshortage.Theimpactofcompetitionbetweenagenciesfor
scarceskillsoncontractorcostswasalsocommentedupon.
Agenciesareturningtoamixofsolutionstocopewithskillsshortages.Theseinclude:
•Adoptionofworkforceplanning,togetherwithflexibleemploymentstrategiestodealwith
anageingICTworkforce.FouragenciesreportedimplementationofanICT-specificworkforce
plan,whiletwomorearedevelopingsuchplans.
•Relianceoncontractors,withheavypremiummarketratespaidbysomeagencies.Many
agenciescommentedthattheybelievedtheirpanelarrangementswereverysuccessful.
•Partneringwithprivatesectororganisationstodeliverprojects.
•LocationofICTstaffoutsideofCanberra.Duringagencybilateralmeetings,threeagencies
notedthattheyhadconsciouslymovedICTpositionstootherlocationsthroughoutAustralia
inresponsetotheICTskillsshortage.11Oneagencynotedthatthisapproachhad,tosome
extent,bufferedthemfromtherisksinherentintheskillsshortage.Thisagencynotedthat
projectworkwaseasiertodispersethanongoingproductionsupport.
•Internationalrecruitment.
•Educationandgraduaterecruitment,includingpartneringwithtertiaryinstitutions,running
traineeshipprograms,andsupportingapprenticeships.Twoagenciesreportedthattheyhave
partneredwithtertiaryinstitutionsinanefforttoproducegraduatesskilledintheiragency’s
particularrequirements.TheDefenceMaterielOrganisationispartneringwithatertiaryinstitution
todevelopaMastersinprojectmanagementwhichisopentoallgovernmentemployees.
1.5. MANAGING ICT SPEND
AgencieswereaskedhowtheyensuredthattheirICTspend(bothoperatingandcapital)isas
efficientandeffectiveaspossible,andtoprovidedetailsoftheperformancemetricsusedto
measuretheefficiencyandeffectivenessoftheirICTfunction.
1.5.1. Measures of efficiency
VeryfewagenciessaidthattheyusedmetricstoassesstheefficiencyoftheirICTspend.Only
twoagenciesregularlyreportedefficiencymetricsandtargetstotheirseniorexecutive.A
furthertwoagenciessaidthattheyusedefficiencymetricsannually,whilesevenreportedthat
theyundertakeefficiencybenchmarkingonanadhocbasisusingcontractedserviceproviders.
11 It is recognised that many more agencies have ICT capability in other locations outside of Canberra due to their headquarters being located in non-Canberra locations, and other business reasons. However, as reported in 3.2.3, 79% of ICT staff are located in the Australian Capital Territory (ACT).
Chapter One:ViewsfromwithintheAustralianGovernment ��
Fouragenciesaredevelopingefficiencymeasurementmetricsorareimplementingactivity-
basedcostingtounderstandtheirICTcosts.Therewassomeevidenceofmultipleinstancesof
taxpayers’moneybeingspenttoobtainbenchmarkdatainareassuchasdesktops.
1.5.2. Measures of effectiveness
Twenty-sixagenciesreportedthattheyemploymetricstomanagetheeffectivenessoftheirICT
operation,suchasavailability,outagereporting,numberofclientapplicationservicerequests
completed,andcustomersatisfactionsurveys.Afurthertwomanagetheeffectivenessoftheir
ICTserviceprovidersthroughtheuseofoperationalmetrics.
1.5.3. Other mechanisms to measure efficiency and effectiveness
Oftheremainingagencies,ninereportedusingqualitativeratherthanquantitativeefficiency
andeffectivenessmeasures,including:
•projectmanagementframeworkssuchasPRINCE2™
•governancecommitteesthatmonitorICT-relatedprojectsandoperations
•activebudgetmanagement–comparingactualcosttobudgets
•procurementapproachessuchasmarkettestingandpanelcontracts
•servicedeliveryreportingofoutsourcedarrangements.
Thesemeasureswerealsousedbyagenciesthatdidreportusingquantitativemetrics.Two
agenciesdidnotreportusinganymethodstomanagetheirICTspend.
1.5.4. Future plans to increase efficiency and effectiveness of ICT spend
Inadditiontothoseagenciesalreadyusingtechniquessuchasthefollowing,otheragencies
reportedfutureplanstoincreasetheefficiencyandeffectivenessofICTspendby:
•increasinguseofconsolidation,virtualisationandcentralisationofinfrastructure(sevenagencies)
•markettestingoutsourcedarrangements,infrastructureandsystems(sixagencies)
•improvingfundingandgovernancesystems(fiveagencies)
•refreshinganddeployingupdatedtechnology(fiveagencies)
•adoptingastrongerarchitecturalapproachtoICT(fouragencies)
•implementingrecognisedframeworks,suchasservicemanagementandotherITIL®based
approaches(fouragencies)
•drivinggreatercost-efficienciesinprocurementthroughpartneringwithotherstoobtain
volumediscounts(fouragencies)
•implementingEarnedValuemanagement(twoagencies).
Chapter One:ViewsfromwithintheAustralianGovernment��
1.6. PROCUREMENT AND ICT OUTSOURCING
Althoughnotexplicitlymentionedintheinvitationtoagenciestomakeasubmissiontothe
review,manyagencieshadpointsofviewonprocurementandICToutsourcingandtheir
relevancetoeffectivenessandefficiency.
1.6.1. $80,000 tender threshold
FiveagenciesdiscussedthedifficultiesarisingfromtheCommonwealthProcurement
GuidelinesrequirementforanopentenderforanyICTacquisitionestimatedtocostmorethan
$80,000.ThisissuewasalsoraisedatameetingoftheChiefInformationOfficerForumwhichI
attended.
1.6.2. Common-use contracts and supplier panel arrangements
Nineagenciessawmeritingreateruseofcommon-usecontractsandsupplierpanel
arrangementsdevelopedbyacentralbodyinareasofgenericneedoruse.Therewas
recognitionthatvolumesourcingarrangementscurrentlyunderdevelopmentcouldservicethis
need.Afewagenciessupportedcommonapproachestobenchmarking.
Twoagenciesstatedthatsuchawhollycentralisedprocurementfunctionislikelytoadda
significantbureaucraticoverheadthatwouldnotbejustifiedbyefficiencies.Fouragencies
saidthatanymovetocentre-ledprocurementmustensurethatagenciesarenothinderedin
achievingtheirspecificbusinessoutcomes.
1.6.3. ICT outsourcing
Agenciesuseamixofinsourcedandoutsourcedarrangements.Someagenciesaremoving
torenewtheiroutsourceddeliveryarrangements,whileothershaveneveroutsourcedand
alwaysretainedaninsourcedICTcapability.Otheragenciesaremovingbackfromoutsourcedto
insourcedarrangements,andothershaveamixofinsourcedandoutsourcedarrangementsbut
notaspartofaclusterarrangement.Thisclusterarrangement,requiredundertheInformation
TechnologyInfrastructureConsolidationandOutsourcingInitiativecommencingin1997,
attractedcriticismfromthreesmalleragencies.Theyfoundthattheirneedsarenotbeing
cateredforasoutsourcedprovidersdedicatemostattentiontotheneedsoflargeragenciesin
thecluster.
Atmeetingswithagencyheads,Iheardthattheoutsourcinginitiativewashandledtoo
directionallybyacentralauthorityandthatthearrangementsadverselyimpactedupon
agencies’abilitytofunctionefficientlyandeffectively.Therewasmuchcriticismoftheinitiative,
withagenciescomplainingofthelong-termimplications.Forexample,oneagencysaidthatit
wasnowmovingfromoutsourcedtoinsourcedservices,withthemaindriverbeingreduced
costs.Anotheragencystatedthatitsexpectationsforservicedeliverywerenotmetbytheir
Chapter One:ViewsfromwithintheAustralianGovernment ��
outsourcedserviceprovider.Concernwasexpressedbyagencyheadsthattheclusteringof
agencieswasrandomandtherewaslittlebusinessalignmentintheclusters.
InDecember2000,areportontheReview of the Whole-of-Government Information
Technology Outsourcing Initiative(theHumphryReport)wasconsideredbytheGovernment.
TheGovernmentagreedwiththerecommendationwhichsawfutureresponsibilityfor
implementingtheoutsourcinginitiativefullydevolvedtoagencyChiefExecutivesorBoards.12
1.7. USE OF BEST PRACTICE
DuringthecourseofthereviewIsoughttodeterminetheextenttowhichAustralian
Governmentagencieswereengagedinbetterpracticeandbestpractice.Exampleswere
soughtfromagencysubmissions,bilateralconsultationsandthroughwiderinvestigations.In
myview,thereareanumberofbetterandbestpracticeexamplesacrossgovernmentwhich
couldbemorewidelyadopted.Whilethereisbroadawarenessofafewwell-knownexamples,
thesetendtobetheexception.Thereisnosystematicmeanstopromulgatebestpractice
morewidelyand,asaresult,thereisonlylimitedawarenessbyotheragenciesofmostofthese
initiatives.Thereisclearlypotentialtoleveragetheseexamplesbypublicisingthemmore
effectively.Anillustrativeselectionofexamplesisincludedbelow.
1.7.1. SmartForms
TheDepartmentofInnovation,Industry,ScienceandResearchhasdevelopedacentreof
excellenceinSmartForms.SmartFormsareaplatformtodeliveradvancedonlineformsand
servicesacrossgovernment.TheyenabletheGovernmenttoprovidemoreinformationand
servicesonlinetothebusinesscommunityandenablecompaniestocompletetheirregulatory
andreportingrequirementsmoreefficiently.Therearecurrentlyover650liveSmartForms
availableonthesite,resultinginsharedforms,templates,infrastructureandknowledge
acrossmultiplegovernmentagencies,includingCentrelinkandFinance,andseveralstate
governments.Thiswhole-of-governmentsolutionhasbeenavailablesinceNovember2005to
governmentagenciesthatownbusiness-relatedforms.
1.7.2. Architecture-based design
Centrelink’ssystemofonlineclaimsandservicesforcustomersprovidesafacilitythrough
whichcustomerscanviewandupdatearangeofpersonaldataovertheinternet.Customers
canaccessinformation,correctinaccurateinformation,lodgeclaimsandmanagetheir
Centrelinkaffairs.Centrelinkisemployinganewserviceorientedarchitecturetomakefunctions
anddatacontainedinitsmainframe-basedlegacyapplicationsavailabletoapplicationsusing
12 Humphry, Richard AO (December 2000), Review of the Whole-of-Government Information Technology Outsourcing Initiative.
Chapter One:ViewsfromwithintheAustralianGovernment��
webservices.Thisallowsinformationtobecollectedfromcitizenswithlittleornointervention
fromCentrelinkstaff.Onlineservicesarenowbeingdevelopedusingindustrystandard
technology,providinganincreasingopportunitytodeliverservicesthatcrosstraditionalsystem
andagencyboundaries.Centrelinkhasfoundthatre-useofsystemsandfunctionalityis
deliveringcost-efficiencies,reducingdevelopmenttime,andprovidingstandardised,consistent
servicesanduserinterfacestocustomers.Onlineservicesunderdevelopmentwillre-use
existingwebservicestoleveragepreviousinvestmentinICT.
1.7.3. Project maturity assessments
TheDefenceMaterielOrganisationhasimplementedatechniquewhichassessesthematurity
ofprojectsastheyprogressfromconcepttoin-service.Projectsareassessedagainstthecriteria
ofschedule,cost,realisationofrequirement,understandingofthetechnicalsolutionand
arrangementstooperateandsupportthecapability,technicaldifficulty,industryperformance
issues,andoperationsandsupport.
1.7.4. Secure communications
FedLinkisawhole-of-governmentencryptionsystemthatallowsdataclassifiedupto
andincludingPROTECTEDandRESTRICTEDtobetransferredsecurelyamongAustralian
Governmentagenciesacrosstheinternetoranyinsecureinfrastructure.Sinceestablishmentin
2001,FedLinkhasexpandedtoprovideservicesfor98AustralianGovernmentagencies(52%of
allFMAActandCommonwealth Authorities and Companies Act 1997agencies).
TheinitiativeoperatesunderaheadagreementbetweenFinanceandtheFedLinkservice
provider.Individualagencycontractsarebetweentheagencyandtheserviceprovider.FedLink
isimplementedasauser-paysfundingmodelandiscost-efficientincomparisontosimilar
commercialofferings.Overthepast7yearsinoperation,FedLinkhasprovedtobearobustand
effectiveservicewithminimalimpactontheagencyorenduser.
1.7.5. Sourcing strategies
Someagenciesarespecifyingoutcomesratherthantechnicalspecificationsasthebasisof
competitivetendering.TheDepartmentofForeignAffairsandTradestatesthisapproachhas
identifiedthatcommercialoff-the-shelf(COTS)productscanmeettheneedsofthebusiness
withoutbespoking.
SeveralagenciesnominatedspecificinstancesoftheirICTsourcingasbestpractice.These
includeda‘bestofbreed’policy(AustralianElectoralCommission);ahybridsourcingmodel
(DepartmentofInfrastructure,Transport,RegionalDevelopmentandLocalGovernment);
multi-partyarrangements(AustralianCustomsService);andleveragingofcross-portfolio
arrangements(DepartmentofHumanServices).
Chapter One:ViewsfromwithintheAustralianGovernment ��
1.7.6. Collaboration with industry
TheAustralianTaxationOffice(ATO)hasaSoftwareIndustryLiaisonUnitwhichwasestablished
toassisttax-relatedsoftwaredeveloperswithchangesthatcameaboutduringoneof
Australia’smajortaxreforms.TheATOhascontinuedtocollaboratecloselywithsoftware
developerstoimproveandstreamlinetheirinteractionswithATOsystems.Forexample,the
unitmakesavailablealltax-relatedinformationrequiredbysoftwaredeveloperstoreadily
interfacetheirsystemstotheATO.
1.7.7. ICT management frameworks
Asnotedinsection1.3.2,18agenciesareusingITIL®andafurtherfourareplanningto
implementit.Oftheseagencies,eightaresufficientlyconfidentinitsusetonominateitasa
bestpracticeframeworkforpromulgationacrossgovernment.ITIL®practicesarecommonly
implementedinareasofproblemmanagement,incidentmanagement,changemanagement
andconfigurationmanagement.
Likewise,thereare11agenciescurrentlyusingtheITGovernanceInstitute’sCOBIT®asa
managementtool,enablingbenchmarkingandtargetingofmaturitylevels.Fouragencies
suggestedgovernment-wideuseofCOBIT®.
1.7.8. Earned Value management
EarnedValueisasetofbestpracticeprojectmanagementtechniquesthatintegratecost,
scheduleandtechnicalperformance.EarnedValueestablishesobjectivemeasuresoftheactual
workachievedcomparedtotheplanforthatwork.Itrequiresbetterup-frontplanningand
providesanagencyanditscontractorwiththesameperformancedataagainstwhichproject
progresscanbemanagedandreviewed.
TheATOhasrealisedgreatertransparencyofthestatusofitsChangeProgrambyemploying
SimplifiedEarnedValuemethodologyandfixedpricemilestonepaymentsforitscontractfor
serviceswithAccenture.SimplifiedEarnedValueprovidesapaymentmethodwherethedollar
amountclaimedbytheproviderrelatestotheamountofworkperformed.Warranty,stagegate
andrisk-rewardpaymentsremainfixedprice,withspecificpoint-in-timetriggersandmilestone
achievementcriteria.Invoicesarereceivedmonthlyforthepreviousmonth’sworkeffort.
TheDefenceMaterielOrganisationalsousesamixofEarnedValueandprojectmilestonesto
manageprojects.Itusesthetechniqueinlarger,morecomplexprojects(usuallyatleast$20
millionandwithsystemintegrationinvolved).
Chapter One:ViewsfromwithintheAustralianGovernment��
1.7.9. Knowledge management
TheAustralianBureauofStatistics(ABS)KnowledgeManagementEnvironmentdelivers
ongoinginformationproductivitythroughprovisionofanenablingdesktopITenvironment,
whichfacilitatescollaborationandallowstheinformationproducedtobemanagedas
acorporateasset.Theplatformintegratesportal,collaboration,mail,workflow,offline
capabilities,documentmanagementandrecordkeeping,andsupportstheorganisational
objectives.Thisincludesthecreation,production,publicationanddistributionofinformation,
includingthe‘automated’deliveryofpublicationsandcontenttotheABSwebsite.
1.7.10. Energy efficiency in data centres
TheTreasuryreportedthatithadinvestedinanewdatacentrewithaconsciousefforttoreduce
itscarbonfootprintbyre-usingthecoldairinCanberraforthecentre’scoolingrequirements.
1.7.11. Search
TheAgencySearchServiceallowsagenciestoleveragethewhole-of-governmentsearchservice
providedthroughaustralia.gov.au,toprovideasearchonagencywebsites.Thirty-twoagencies
havefullyimplementedtheuseofthisserviceover57websites.Agenciesusingthesearch
serviceincludetheBureauofMeteorology,MedicareAustralia,theDepartmentofHealthand
Ageing,andFinance.
1.7.12. Successful delivery of technology refresh
Centrelink’sITRefreshprogramhasincreasedtherangeofservicesthatCentrelink’scustomers
arenowabletoaccessonline.AccordingtoanauditbytheANAO13,itsignificantlyadvanced
onlineservicesforprivatesectororganisations,enablingthemtoverifycustomercircumstances
andtoexchangeinformation;reducedtheriskofservicecompromiseorfailureduetothe
ageingofitssystems;andestablishedanEnterpriseDataWarehousethatwillprovidethe
capabilitytosubstantiallyimproveitsmanagementinformation.Overthefiveyearsofthe
Refreshprogram,Centrelinkcommittedtoachievingsavingsinadministeredpayments(such
asbenefitandpensionpayments)of$184million,andsavingsindepartmentalexpensesof
$120.9million.Centrelinkachievedthecommittedbudgetarysavings.
1.7.13. Customer-focused service delivery
TheATOe-taxserviceisafreetaxreturnpreparationsoftwarethatensuresmostrefundsare
issuedin14days.e-taxhelpscitizenspreparetheirincometaxreturnandbabybonusclaim,
andthenlodgeonline.ItalsoletscitizensdownloadtheirMedicarebenefittaxstatement
details.e-taxwasfirstintroducedin1999forthe1998–99financialyear.
13 Audit No. 17, 2007-08, ‘Management of the IT Refresh Program’.
Chapter One:ViewsfromwithintheAustralianGovernment ��
TheABSe-CensusfacilityisatoolthatprovidesallAustralianswitharobust,secureandeasy
alternativetocompletingthepaperCensusform,andmakesiteasierfortheABStocount
peoplelivinginisolatedplaces.Importantly,itisalsoaccessibleforpeoplewithadisabilityasit
usesassistivetechnologies.
1.7.14. Green ICT
TheDepartmentofDefence(Defence)implementedaGreenICTinitiativeinJune2008.By
enforcingautomaticlog-offandthenautomaticshut-downonitsmajorPCfleet,thenumber
ofmachinesleftpoweredonafterhoursfellfrom50,000to3,000.Electricitysavingsfromthis
initiativeareexpectedtoexceed$5millionannually.Theequivalentcutingreenhousegas
emissionsisexpectedtoexceed30,000tonnesannually–theequivalentoftaking7,500cars
offtheroadpermanently.
1.8. VIEWS ON EXISTING WHOLE-OF-GOVERNMENT ARRANGEMENTS
Agencieswereaskedfortheirviewsonexistingwhole-of-governmentarrangementstoguide
theGovernment’suseandmanagementofICT.Severalframeworks,guides,strategiesand
policiesalreadyexistwithinthewhole-of-governmentenvironment,andagencieswereasked
toindicatetheirlevelofuseoftheseframeworks,andanyissuesthatimpededuse.
1.8.1. Current governance mechanisms
Averysmallpoolofagenciescommentedonthecurrentgovernancemechanisms,mainly
agenciesthatareinvolvedintherelevantcommittees.Commentsweremadeonanindividual
agencybasis.
AgenciesreportedthattheSecretaries’CommitteeonICT(SCICT)providesonlylimited
guidance.Oneagencysaidthattheforumstrugglestodelivervalueoncollaborationandis
strugglingtodetermineitslevelofinteractionwithagencies.TheagencysaidthattheSCICT
hasnoauthoritytobecriticalandfailedtoaffectdecisionscomingoutoftheBudgetprocess.
OneoftheSCICTmemberssaidthattheyexpectedthattheforumwouldsharelearnings,but
thisdidnothappen.Instead,theforumactedasa‘sandtrap’,slowingdowninitiativesfrom
agencies.PM&CsaidthattheGovernmentneedstoreviewtheSCICT’stermsofreferenceand
modusoperandi.OneagencysuggestedthattheSCICTcouldprovidevaluebyprovidingaline
ofsightforwhole-of-governmentprogramstopoliticians.
Agenciesreportedthatotherforums,suchastheCIOCommitteeandtheBusinessProcess
TransformationCommittee,areusefulforsharingideas,althoughoneagencycommentedthat
thesecommitteestendtoshareissuesratherthansolvethem.
Chapter One:ViewsfromwithintheAustralianGovernment��
1.8.2. Views on the Australian Government Information Management Office
Commentswereofferedbyagenciesonanindividualbasis.
Oneagencynotedthat,whiletheaspirationbehindtheAustralianGovernmentInformation
ManagementOffice(AGIMO)wasgood,AGIMOhasbeenaroundforsometimeandthereis
stillnoevidentreturnoninvestment.AnotheragencynotedthatAGIMOhasnoauthorityover
agenciesandthatthiswasasignificantissue.OneagencynotedthatAGIMO’srolemightbe
betterplacedinanotherpartofgovernment,suchaswithinthePM&CCabinetImplementation
Unit,asitsrolewithinFinancewasproblematicbecauseFinance’sroleistoreduceexpenditure.
AgenciesfeltthatAGIMOdoeshavearoletoplayintermsofleadingandfacilitatingworkon
architecture,frameworksandstandards.Therewassupportforexistingcentralframeworks,
standards,bestpracticeguidesandservicessuchas:
•AustralianGovernmentArchitecture(7agencies)
•AustralianGovernmente-AuthenticationFramework(7agencies)
•AustralianGovernmentTelecommunicationsArrangements(6agencies)
•AustralianGovernmentTechnicalInteroperabilityFramework(5agencies)
•Betterpracticeguides(5agencies)
•BlackBerryguidance(5agencies)
•e-Governmentstrategy(5agencies)
•Fedlink(5agencies).
1.8.3. Barriers to adoption
Agencieswereaskedwhytheydidnotadoptwhole-of-governmentpolicies.
Sevenagencies,indifferentways,expressedaviewthatagenciesneededtoremain
autonomousduetoeithertheuniquerequirementsoftheirbusiness,orbecausetheycould
driveabetterpricingdealasasingleentity.
Fouragencieshighlightedthelackofcommonstandardsandacommonlanguageasinhibiting
whole-of-governmentapproaches.
AnotherfouragenciesobservedthatitisdifficulttodeployAGIMOframeworksandguidanceas
theGovernmentdoesnotprovideanyextrafundingtoenableagenciestoadoptthesepolicies.
Chapter One:ViewsfromwithintheAustralianGovernment ��
1.8.4. Future coordination
Nineagenciesstatedthattheysawvalueinsomeformofstrongcentralleadershipand
authoritytocoordinatewhole-of-governmentarrangementsincertainareas,forexample,
architectureandbusinessprocessdesign.Fiveagenciesnotedthatanyframeworksand
guidanceintroducedundersucharrangementswouldneedtobebackedbyastrongbusiness
case,oropt-inprovisions.
SevenagenciesexpressedconcernoveranytrendtocentraliseICTdecisionmakingthat
couldnotaccommodateuniquerequirementsofin-houseandcollaborativeapplications
development,duetothehighlyspecialisednatureofagencypurchases.Theseagenciesfeltthat
thepossibleimpositionofawhole-of-governmentinitiativecouldaffectanagency’sabilityto
operateefficientlyandeffectively.
1.9. VIEWS ON DATA CENTRES
Duringanumberofagencybilateralmeetings,theissueofinadequatecurrentdatacentre
arrangementsarose.Keypointsraisedincluded:
•Age.WithfewexceptionsCanberra’sexistingdatacentrefacilitiesareageingandexperience
difficultymeetingtherequirementsofcurrenttechnologyand/oravailabilitydemands.There
areexamplesofdatacentreswithintheACTthatarehostedbyprivateorganisationsthat
havehadlittleinvestmenttoaccommodatechangingtechnologydemands.
•Power.AgenciesraisedconcernsoverCanberra’srelianceonasinglepowergrid.14
Asubsequentsurveywasundertakenwiththe16largestagencies(excludingDefence)tohelp
informandquantifythemagnitudeofthedatacentreissue.Table1.3containsahighlevel
summaryoffindings.Inaddition,12oftheagenciesidentifiedhavingmorethanoneoftheir
datacentresintheACT.
14 There are two feeds from New South Wales to the single ACT electricity grid. One feed provides 85% of electricity to the ACT and the other 15%. The smaller 15% feed is only to the immediate Fyshwick area and is insufficient to support agency needs. Agencies with data centres in Canberra are therefore susceptible to the single ACT power feed.
Chapter One:ViewsfromwithintheAustralianGovernment�0
CABINET-IN-CONFIDENCE
25 CABINET-IN-CONFIDENCE
Seven agencies expressed concern over any trend to centralise ICT decision making thatcould not accommodate unique requirements of in house and collaborative applicationsdevelopment, due to the highly specialised nature of agency purchases. These agencies feltthat the possible imposition of a whole of government initiative could affect an agency’sability to operate efficiently and effectively.
1.9. VIEWS ON DATA CENTRES
During a number of agency bilateral meetings, the issue of inadequate current data centrearrangements arose. Key points raised included:
• Age. With few exceptions Canberra's existing data centre facilities are ageing andexperience difficulty meeting the requirements of current technology and/or availabilitydemands. There are examples of data centres within the ACT that are hosted by privateorganisations that have had little investment to accommodate changing technologydemands.
• Power. Agencies raised concerns over Canberra’s reliance on a single power grid.14
A subsequent survey was undertaken with the 16 largest agencies (excluding Defence) tohelp inform and quantify the magnitude of the data centre issue. Table 1.3 contains a highlevel summary of findings. In addition, 12 of the agencies identified having more than one oftheir data centres in the ACT.
Table 1.3 – Summary of data centre locations of the 16 largest agencies (excluding Defence) Agency self managed facility within ACT 14
Shared facility within ACT 17
Total data centres located in ACT 31
Agency self managed facility outside of the ACT 8 (7 of these belong to the ABS)
Shared facility outside of ACT 6
Total data centres outside of ACT 14
Total data centres 45
This survey also identified the following:
• Capacity. Excluding remote sites, the total identified capacity for agency data centres is10,484 m². The total identified unused capacity is 1,815 m². Within the ACT the totalidentified capacity is 8,316 m² with an unused capacity of 1,463 m² (17.6%). However,18 data centres within the ACT have identified as having 10 m² or less available capacity.Where the agency is not in an existing shared facility any unused capacity is nottransferable to another agency for use.
14 There are two feeds from New South Wales to the single ACT electricity grid. One feed provides 85% of electricity to theACT and the other 15%. The smaller 15% feed is only to the immediate Fyshwick area and is insufficient to support agencyneeds. Agencies with data centres in Canberra are therefore susceptible to the single ACT power feed.
Thissurveyalsoidentifiedthefollowing:
•Capacity.Excludingremotesites,thetotalidentifiedcapacityforagencydatacentresis
10,484m².Thetotalidentifiedunusedcapacityis1,815m².WithintheACTthetotalidentified
capacityis8,316m²withanunusedcapacityof1,463m²(17.6%).However,18datacentreswithin
theACThaveidentifiedashaving10m²orlessavailablecapacity.Wheretheagencyisnotinan
existingsharedfacilityanyunusedcapacityisnottransferabletoanotheragencyforuse.
•Availability.UsingtheTierClassificationSystemoftheUptimeInstitute15fordatacentre
availability,16oftheidentifieddatacentresarebelowthetierlevelidentifiedbyagenciesthat
meetstheircurrentminimumavailabilityrequirements.
1.10. VIEWS ON THE ICT INDUSTRY
Duringthebilateralmeetings,anumberofagenciesexpressedconcernsabouttheICTindustry
basedontheirexperiences.Theseincluded:
•thatindustryrepeatedlyover-promisesintendersandunder-deliversinpractice
•industrydoesnotpracticewhatitsuggeststhatagenciesshoulddo
•thatthequalityofresourcesinimplementationdoesnotmatchthequalitypromisedduring
tenderingandcontractnegotiations.
1.11. ICT ARRANGEMENTS IN MINISTERIAL OFFICES
Duringthecourseofthereview,Iwasmadeawareofanissueaffectinginteroperabilityof
ICTsystemswithinministerialofficesatParliamentHouse,Canberra.Thisissueservesas
areminderoftheimportanceofinteroperability,commonsystems,andtheproblemsthat
canresultfromanautonomousapproachtoICTsystems.TheissueisoutsidetheTerms
ofReferenceformyreview,buttheconcernswerepassedontoFinance,whichhassome
responsibilityforprovidingservicestoMinisters.
15 See http://uptimeinstitute.org/wp_pdf/(TUI3026E)TierClassificationsDefineSiteInfrastructure.pdf
Table 1.3 – Summary of data centre locations of the 16 largest agencies (excluding Defence)
Chapter Two:ViewsfromoutsidetheAustralianGovernment ��
chaPteR �: views fRom outside the austRalian goveRnmentThischaptersummarisesthekeythemesraisedbythoseoutsidetheAustralianGovernment
(theGovernment)andrepresentstheviewsof:
•ICTcompanies
•ICTindustryassociations(includingtheAustralianInformationIndustryAssociation(AIIA),
AustralianIndustryGroup,andOpenSourceIndustryAustralia)
•consultingfirmsworkingintheICTindustry
•individualsworkingintheICTindustry
•ICTrecruitmentfirms
•oneprofessionalbody
•onetradeunion
•oneacademicinstitution
•onestategovernment.
Atotalof72submissionswereanalysed,with51ofthesehavingbeendirectlyinvitedto
provideasubmissiontothereview(seeAppendixD).Thischapteralsotakesintoaccountviews
raisedduringbilateralmeetingsandroundtablediscussionswithvariousexternalstakeholders
andstategovernmentCIOs(seeAppendixE).
2.1. BETTER UTILISATION OF ICT ASSETS
TherewasageneralviewacrossindustrythatthereisagreatdealofduplicationofICTsystems,
applicationsandinfrastructurewithintheGovernment,stemmingfromthedecentralised
andindependentwayagencieshaveinvestedinICT.Manysubmissions(29)commented
onsignificantopportunitiesfortheGovernmenttorealiseefficienciesbyrationalising,
standardising,consolidatingandsharingorre-usingcurrentassets.Inparticular,thefollowing
areaswerehighlighted.
2.1.1. Bandwidth and network infrastructure
Fourteensubmissionsindicatedthataggregatingandsharingnetworkconnectionsand
gatewayscouldachievesignificantsavings.OnecompanypointedoutthattheGovernment
oftenhas20–30datanetworkconnectionsperregionalcityortownacrossAustralia,witheach
agencyimplementingadedicatedconnectionto/fromCanberra.
Chapter Two:ViewsfromoutsidetheAustralianGovernment��
Afew(4)alsofeltthatthephysicalfibrethatmakesuptheIntraGovernmentCommunications
Network(ICON)issignificantlyunder-used.Itcouldprovideafoundationforestablishinga
sharednetworkedserviceinfrastructureforarangeofsharedservices,aswellasdeliveringan
evenbroaderrangeoftelecommunicationsservicesmorecost-effectively.
2.1.2. Data centres
Industrybelievedthatgrowthintechnologydemandischallengingthephysicalconstraints
ondatacentresglobally,andtheGovernmentisnoexception.Industrybodiespointedtothe
followingfactorsashavinganimpactonthecurrentdatacentrefacilitiesofagencies:
•Servergrowth.Gartner16estimatesthatthecurrentglobalcompoundannualgrowthrate
ofserversis12%,butoneindustrybodyhasidentifiedittobeashighas18%forsome
governmentdatacentres.Thiscontributessignificantlytodemandondatacentrefloorspace.
•Datacentrefloorspace.Despitemajoradvancesinconsolidationandservervirtualisation
technology,Gartner17estimatesthatthedemandfordatacentrefloorspaceisforecastto
bearound5–10%ayear.Withmanydatacentreseitheratornearcapacity,thisposesa
significantissueformanyagencies.
•Heating,ventilationandair-conditioning(HVAC).Datacentresrequirestablethermal
conditions.Thecurrentgrowthinpowerdensityduetochangingservertechnologyis
projectedbyGartner18tobe3.5KW/m2overthenext5years.MostgovernmentHVAC
systemsprovidepressurisedairviaafalsefloortothebaseofaserverrack,andthepractical
limitationofsuchasystemis1KW/m2.Thisdiscrepancywillseeanincreaseinthermal
‘hotspots’,andaconsequentneedtoimproveHVACdesignandimplementation.
•Growthindemandforpower.Asampleofdatacentrepowerdemandforoneagencyshows
thatdemandforpowerinitsdatacentrehasgrownby30%compoundannualgrowthrate
overthepast5years(from230KiloVolt-Ampsto850KiloVolt-Amps).
•Efficiency.UsingtheUptimeInstitute’sdatacentrecostmodellingtool,datacentreeconomy
improvessignificantlybetween500m2and1,000m2.(Note:Ofthe45datacentresreferred
toinsection1.9,onlyfourexceed500m2).
•Weightandfloorloading.Currently,typicalgovernmentdatacentrefloorloadingcapability
isabout450kilogramsperrack.Theweightofnewservertechnologypopulatingtheseracks
hasincreasedfrom380kilogramsperracktoover1,000kilogramsperrackoverthepast
5years.Asaresult,racksarenotbeingfullyutilisedandthereisarequirementforimproved
designandimplementationinordertoimprovefloorspaceutilisation,providedHVAC
limitationscanalsobeovercome.
16 Gartner (August 2006), ‘A message from data centre managers to CIOs: Floor space, power, and cooling will limit our growth’.
17 Ibid.
18 Gartner (September 2007), ‘U.S. data centers: The calm before the storm’.
Chapter Two:ViewsfromoutsidetheAustralianGovernment ��
•Oneindustrybodyidentifiedthatdatastoragedemandisgrowingbyasmuchas60%per
annum.ThisgrowthimpactsonHVAC,floorspace,powerdemandandICTstaffnumbers.
•GreenICT.DatacentresarecontributingsignificantlytotheGovernment’scarbonfootprint.
AccordingtotheUptimeInstitute,datacentresaccountfor0.5%oftotalworldwideenergy
consumption,andenergyconsumptionofdatacentreshasdoubledbetween2000and2008.
Intheabsenceofanoverarchingwhole-of-governmentviewondatacentres,agenciestendto
provideorsourcetheirfacilitiesautonomously.Thisleadstounnecessaryduplicationacross
governmentofnotonlydatacentrefacilities,butduplicationindatacentreoperations,forexample,
specialisedsupportstaffandprocesses.Fourteensubmissionsindicatedthatconsolidatingagency
datacentrefacilitieshasthepotentialtorealisesignificantsavingsfortheGovernment.
2.1.2.1. Capacity management
Thereview’sattentionwasdrawntoanalysts’reportsquotingaveragecapacityutilisationof
serversacrosstheindustryasbeingbetween15%and20%duringworkinghours.19Somefelt
thatbettercapacitymanagementwouldprovideaccesstocurrentuntappedorunder-utilised
resources.Inaddition,atechniqueknownasservervirtualisationcouldmakebetteruseof
existingprocessingcapacitywithinandacrossagencies.
2.1.2.2. Storage
Industrycommentedthatwithdataandinformationcontinuingtoexpandexponentiallydue
totheincreasingprevalenceofdigitalcontentandthepervasivenessoflegislativecompliance
requirementspertainingtodata,eachagencyfacesincreasingstoragerequirements.
Consolidatingstorageintolargerepositorieswoulddrivecheaperpermegabytestoragecosts.20
Inaddition,consolidationwouldenablethedeliveryofdifferentiatedhigh,mediumandlow
availabilitystorageservicesbasedonneed.
2.1.3. Consolidation/integration of service delivery channels
TwelvesubmissionscommentedontheopportunityfortheGovernmenttoenhanceservice
deliverythroughintegrationandcollaborationacrossagencies,particularlythroughsingleentry
pointsforgovernmentinformationandservices.Reducingthenumberofcustomer-facing
governmentportalswouldprovidegovernmentcustomers,citizensandbusinesseswitha
singledoortoaccessthemajorityofgovernmentservicesandreducethecostofmaintaining
multipleentrypoints.Afewsubmissionsalsomentionedthebettersharingofotherservice
deliverychannels,suchasface-to-faceandtelephone.
19 Adrian Johnson (June 2007), ‘Capacity utilisation - Asking the questions’, MeasureIT Issue 5.06, http://www.cmg.org/measureit/issues/mit42/m_42_5.html
20 Technically, it is possible to consolidate storage without actually consolidating data.
Chapter Two:ViewsfromoutsidetheAustralianGovernment��
2.1.4. Business systems and applications
Somesubmissions(10)feltthatopportunitiescouldbegainedfromstandardisingand
rationalisingthemyriadofbusinesssystemsandapplicationsagenciescurrentlyuse,
particularlywithaviewtobettersharingandre-useamongagencies.Relatedtothis,four
submissionscommentedonopportunitiesfromrationalisingsoftwarelicences.
Thestategovernment’ssubmissionidentifiedthatithasalreadyseentheeffectsof
rationalisationinitsdevelopmentenvironments.Inits2005–06baseline,50%ofitsagencies
requiredatleastfourdifferentapplicationdevelopmentskillsets,whichraisestrainingcosts
andskillsmanagementoverheads,aswellasknowledgemanagementrisk.Thisfigurewas
reducedto29%in2006–07,accordingtoitsbaselinereporting.
2.1.5. Infrastructure
Somesubmissions(8)alsofeltthatthereareopportunitiestorationalise,consolidateandshare
ICTinfrastructure(suchascallcentres),particularlyforsmalleragencies,notingthatsome
poolingandconsolidationofrequirementswouldberequired.
OnecompanysurmisedthattheGovernmentcouldsaveupto$100millionbyoptimisingits
infrastructurealone.
2.2. SHARED SERVICES
Manysubmissions(29)consideredthatrationalising,standardisingandaggregatingbusiness
systemsandapplicationsalsoenablesamovetosharedservicesacrossagencies.Bywayof
comparison,11submissionsindicatedthatothergovernments(bothstateandinternational)
haveprogressedfurtherinthisarea.TheymentionedtheactivitiesoftheVictorianand
QueenslandGovernments,andtheUSandUKGovernments,andsuggestedthatthe
Governmentexploreandlearnfromtheirexperiences.
Thetopcandidatessuggestedbyindustryforsharedservicesincluded:
•financialandhumanresourcesmanagementandpayroll(20mentions)
•procurement,purchasingandcontracting(10mentions)
•document/recordsmanagement(eightmentions)
•paymentprocessing(sixmentions)
•securityandauthentication(fivementions)
•identityandaccessmanagement(fivementions)
•grantsmanagement(fivementions).
Chapter Two:ViewsfromoutsidetheAustralianGovernment ��
Whileindustrywasgenerallyoptimisticaboutthepotentialofsharedservices,theyalso
notedthatsharedservicesandsystemsinevitablyinvolveadegreeofcompromisethatcan
exposethedifferentbusinessexpectationsofcustomers.Thissentimentwasechoedinthe
meetingsIheldwithstategovernmentCIOs.Whiletheyacknowledgedthepotentialbenefits
ofsharedservices,theycommentedonthesignificantchallengesandrisksassociatedwith
implementation,andcounselledconsiderablecautioninthisarea.
2.3. STANDARDISED/COORDINATED APPROACH TO PROCUREMENT
Manysubmissions(32)mentionedthattheGovernmentcouldobtainsignificantefficienciesby
adoptingastandardisedorcoordinatedapproachtoprocurement.Therearecurrentlymultiple
tendersforthesameproductorservice(whichiscostlyforboththeGovernmentandindustry)
andagenciesarebuyingtheseproductsorservicesatdifferentprices.Somesubmissions(17)
wentontosaythattheGovernmentisnotmakingthebestuseofitscollectivepurchasing
power(particularlyinpurchasingcommodityproducts).Atthesametime,itisincurringhigh
administrativecostsbyhavingmultipleprocurementactivitiesacrossagencies.Thisincludes
expenditureonexternalconsultants,probityadvisers,legaladvisersandinternalresources.
However,11submissionscommentedontheneedtobemindfuloftheimpactofanysuch
standardisedorcoordinatedprocurementactivitiesorinitiativesoncompetition,especiallyon
smallerplayers.Onecommentedthatsmallandmediumenterprises(SMEs)inparticular,tend
tobesqueezedoutinconsolidationprograms,robbingtheGovernmentoftheinnovations
offeredbysmallersuppliers.AnotherreferredtoresearchindicatingthatSMEsgainedaround
22.5%ofworkbycontractvaluein2004–05,while60.3%wenttomultinationals.21Ninealso
commentedontheneedtoconsiderpastattemptsataggregation(forexample,clustering)and
tocarefullyanalysethecostsandbenefitsbeforeproceeding.
2.4. USE OF COMMERCIAL OFF-THE-SHELF SOLUTIONS
Manysubmissions(24)indicatedthattherearenospecificinhibitorstousingcommercial
off-the-shelf(COTS)solutionswithoutcustomisation,with10mentioningthatthereisoften
unnecessaryexcessivecustomisationbyagencies.Thiserodestheinherentbenefitsofferedby
commercialoff-the-shelfproducts,andincreasescosts.
Somesubmissions(13)believedthatmorerobustdefinitionandconsiderationofrequirements,
andadoptingserviceorientedarchitecture(SOA)andopenstandards,wouldincreasethe
appealofCOTSsolutions.
21 Intermedium (2005), ‘SME participation in Australian Government ICT procurement 2003–04 & 2004–05’, Report for the Department of Communications, Information Technology and the Arts, http://archive.dcita.gov.au/__data/assets/pdf_file/0005/56930/Intermedium_Final_Report_03-05.pdf
Chapter Two:ViewsfromoutsidetheAustralianGovernment��
2.5. NEED FOR STANDARDISATION
FourteensubmissionsindicatedtheneedtohavestandardarchitecturesbyadoptingSOA
andtheAustralianGovernmentArchitecture.Theybelievedthatifagencyapplicationswere
developedonthebasisofbuildingservices(andcomponentsofservices)thatwereasgeneric
aspossible,opportunitiesforre-usebymultipleagencieswouldincreasesignificantly.Re-using
applicationswoulddecreasetheinvestmentneededtodevelopnewapplications,andthus
reducethetimetakentodeliverimprovedservicestothecommunity.
Tensubmissionsindicatedthatmuchcanbegainedfromstandardisingbusinessprocesses
acrossagencieswhereverpossible,witheightsuggestingthatagenciesshouldadoptthe
AustralianGovernmentBusinessProcessInteroperabilityFramework.Theybelievedthatthe
framework,ifimplementedacrossallagencies,wouldresultinstandardisationandreduced
costsforagencies,aswellasreducedtenderingcostsforsuppliers.
Seventeensubmissionshighlightedtheneedforwhole-of-governmentcommonandopen
datastandardstofacilitatesharingandcollaborationamongagencies,andtoimproveservice
deliveryinnovationbyremovingtechnologyandvendordependency.
2.6. WHOLE-OF-GOVERNMENT GOVERNANCE
Nineteensubmissionsindicatedthatthereisaroleforacentralbodyto:
•setandensureconsistentandeffectiveapplicationofICTpolicies,guidelinesandbest
practicesthroughaneffectivecomplianceregime
•set,coordinateandmonitorwhole-of-governmentICTstrategyandinvestments.
FourteensubmissionsindicatedthattheGovernmentdoesnotmeasurebenefitswell,
particularlyatthewhole-of-governmentlevel.Theybelievedthatthereisnoconsistentand
rigorousapproachtoestablishing,measuringandreviewingbenefits,whichmakesitdifficult
tosupportgeneralstatementsonthebenefitsofICTtogovernmentoperations.Toimprovethis,
12submissionssuggestedthattheGovernmentwouldbenefitfromcentrallycoordinatingICT
investmentsthroughportfoliomanagementmethodologies,coupledwithstrongperformance
measurementandtrackingofbenefits.Thisincludedexploringpotentialgovernancestructures
formulti-agencydevelopments,aswellascollectingandmonitoringdataonICTinvestments.
Cross-agencyportfoliomanagementcouldidentifyprojectswithahighpotentialtotransform
governmentservices,improvealignmentandintegrationacrossgovernment,andreduce
duplication.OnesubmissionreferredtoresearchwhichshowedthatgoodICTgovernanceis
associatedwitha20%higherreturnonassets.22
22 Weill P & Ross JW (2004), IT governance, Harvard Business School Press, Boston, p. 269.
Chapter Two:ViewsfromoutsidetheAustralianGovernment ��
Somesubmissions(four)alsocommentedontheobservationthatthereareanumberofprivate
sectororganisationsthatareleapingaheadinmanagingICTatanenterpriseleveltoimprove
competitiveness.Theysaidthatwithinthegovernmentcontext,thecentrehasalimitedabilityto
influenceorguideaprogramoncefundinghasbeenapprovedunlessanagencyrequestsextra
funds.Incontrast,privatesectororganisationstendtousemore‘activistcentre’approaches.
WhileninesubmissionscommentedpositivelyonGatewayReviews,theybelievedthereis
stillroomforimprovement.Forexample,theGatewayprocesscouldbeimplementedmore
rigorously(forexample,bymakingGate0compulsory)andlessonslearntfromICTsuccesses
andfailurescouldbesharedmoreeffectively.
Fifteensubmissionsalsomentionedtheneedtofocusonimprovingprojectmanagement
disciplines(particularlybenefitsrealisation),governanceandfundingmechanismsoflargeICT
investments.Somewentontosaythatprojectmanagementshouldbeaformallyrecognised
disciplineingovernmentandthatthereshouldbebetterexecutive-levelcommitmentto,and
improvedrecognitionof,formalprojectmanagementtrainingandaccreditation.
However,12submissionscommentedontheneedtoconcurrentlyreviewandrevisestructures,
mechanismsandincentivestoimprovecollaborationbetweenagencies.Theybelievedthat
thecurrentChiefExecutiveOfficer(CEO)accountabilitiesandinterpretationsoftheFinancial
Management and Accountability Act 1997(FMAAct)donotencouragecross-agencyinitiatives.
Also,becauseagencyCIOsareaccountabletotheirCEO,theGovernmentgenerallydoesnot
havetheauthoritytointerveneinagencyICTdecisions.Insupportofthisobservation,eight
submissionscommentedthatothergovernments(bothstateandinternational)weremore
advancedintermsofinter-agencycollaboration.Asastartingpoint,sixsuggestedcreatinga
centraliseddatabaseofagencies’ICTsystems,hardware,software,capacityandcapabilities.
Thiswouldallowagenciestounderstandandlookforsimilaritiesandduplicationand
determineopportunitiesforsharingorre-use,andconsolidation.
2.7. HIGH COSTS OF TENDERING
Therewasageneralviewthatindustryfindstheprivatesectoreasiertodobusinesswith.
SixteensubmissionsindicatedthatcostsoftenderingtotheGovernmentaretoohigh,and
10indicatedthatdecisionmakingintermsofdefiningbusinessneeds,evaluatingtechnology
solutions,procuringatechnologyandfinalisingcontractsistooslow.
Fourteensubmissionsindicatedthatcontractualtermsandconditionsareoftenoverlyonerous
oruncommercial,andsoughtstandardcontractswithreasonabletermsandconditions.While
theGovernmenthas,inprinciple,adoptedfairandacceptablepoliciesonliability,insuranceand
intellectualproperty(IP),implementationhasbeeninconsistent.Manytenderscontainonerous
clauses,resultinginno-bidsandrestrictingthesolutionsavailabletotheGovernment.For
example,unlimitedliability,orcapsonliabilityaresetsohighastobeessentiallythesameas
unlimitedliability.Industryalsonotedinsuranceclausesthathaveveryhighinsuredamounts
Chapter Two:ViewsfromoutsidetheAustralianGovernment��
(especiallyprofessionalindemnityinsurance).Thelimitsoftenexceedthelikelylossesthatcould
beincurredand,inmanycases,arejustnotavailableintheAustralianinsurancemarketplace.
Theyalsosaidthatagenciesoftenrequireownershipofintellectualpropertyasthedefault
positionwhentheypurchaseICTgoodsandservices.SincemanydonotexploittheIP,the
futurevalueitmighthavegeneratedfortheAustralianICTsectorandwidereconomyislost.
Twelvesubmissionsthoughtthatagenciesareoftentoofocusedonspecificationsorinputs
ratherthanoutcomes.Whereastheprivatesectorfocusesmoreontheoutcomestobe
achievedratherthantheprocessestobefollowed,theGovernmentfocusesoverlyonprocess,
addingsignificantlytoprojectcosts,attheexpenseofensuringprojectoutcomes.Agencies
arealsooftentooprescriptiveintheirspecifications.Onlyonesubmissionprovidedlimited
quantitativecomparativedatawhichindicatedthattheGovernmentissimilartotheUSandUK
Governmentsintermsofbidcostsasapercentageoftotalcontractvalueforlargetenders.The
privatesectortendstoprovidegreaterflexibilityindesigningsolutionsthatencouragegreater
innovationfromvendors.Furthermore,theGovernmentoftenselectsthetenderwiththe
cheapestminimumcomplianceoffer,thusnotachievingtruevalueformoney.
SupplementaryevidencesoughtfromtheAIIAsupportedtheseviews.Basedonasurveyit
conductedwith66membercompanies(around79%ofwhichhadannualAustralianrevenue
oflessthan$15million),about40%indicatedthattheyhavedecidednottoparticipateinthe
Governmentmarket.Inaddition,mostofthosewhodoparticipateregularlydeclinetobidfor
individualtenders.Themainreasonsgivenfornon-responsewere:
•costandcomplexityofthetenderingprocess
•punitivetermsandconditions
•poorlydefinedoutcomesandrisks.
Thesepointswereconfirmedinasubsequentroundtablemeetingthereviewheldwith
nineSMEs.ThismeetingalsoidentifiedsomedifficultiesSMEshadexperiencedwithlarge
primecontractors.
Elevensubmissionswantedearlierandmoreongoingconsultationwithindustrythroughout
theprocurementprocess.Theybelievedthatmanyagenciesarereluctanttoenterinto
meaningfuldiscussionwithpotentialtenderersbeforereleasingrequestsfortender,citing
probityissues.Thisaffectsthequalityofthedecisionmadeandfavourstheincumbent.They
alsobelievedthattheconceptofpartneringisbetterunderstoodandpractisedintheprivate
sector,avoidingthe‘usandthem’attitudesthatcommonlyarisewithgovernmentcontracts.
Chapter Two:ViewsfromoutsidetheAustralianGovernment ��
2.8. THE AUSTRALIAN GOVERNMENT COMPARED TO OTHER GOVERNMENTS
WhileindustrywasaskedtocommentonhowtheAustralianGovernmentcomparedtotheirother
governmentclientsingeneral,apartfromprocurement,norecurringthemeswereidentified.
2.9. SKILLS SHORTAGE
Fourteensubmissionsbelievedthatthecurrentskillsandresourcesshortageswillcontinue
tobeachallengeforallorganisations,notonlytheGovernment,asbabyboomersretireand
thenumberofICTgraduatesdeclines.ThisemphasisestheneedfortheGovernmenttoplan
forfutureskillsrequirementsandpotentialskillsgaps.Theybelievedthatthereisastrong
casefortheGovernmenttoimproveitshumanresourcesplanningandcoordinationofitsICT
workforce,bothfromacapabilityandcapacityperspective.Forexample,itcouldmakemore
effectiveuseandsharingofstaffwithhigh-demandskills.Insupportofthisobservation,nine
submissionsmentionedthatthedecentralisedagency-by-agencymanagementofICTprojects
meansthatagenciesarecompetingforstaff,whichinflatescontractorrates.
AfewsubmissionscommentedthatthestressonthelabourpoolhasledtheGovernmentto
relyheavilyoncontractorsfortheirICTskills,particularlyinCanberra.Anothercommentedthat
manyagenciesareusingcontractorsto‘top-up’permanentstafftoaddressworkloads,withthe
contractorseffectivelybecomingpermanentstaff.Further,industryassertedthatapproximately
20%ofstaffinmanyagencieshavebeenconvertedfromfull-timepermanentstomorehighly
paidcontractors.Theresultisthatwhencontractorsmoveon,sotoodoestheirknowledge
andskillbase.Otherdifficultiesincludeprobityconcerns,lackofsuccessionplanning,variable
quality,andworkersoperatingoutsidetheperformancemanagementsystem.
Toaddresstheseissues,14submissionssuggestedthatICTprofessionalsneedtobevalued
more.Thiscanbeachievedbyimplementingawhole-of-governmentprofessionaldevelopment
programencompassingcareerdevelopment,pathwaystoprofessionalaccreditation,retraining,
recruitmentandretentionstrategies.
Chapter Two:ViewsfromoutsidetheAustralianGovernment�0
2.10. GREEN ICT 23
Somesubmissions(eight)believedthattheGovernmentshouldleadbyexampleandmore
activelyconsiderenvironmentalfactorsaspartoftheirICTpurchasing.Thisnotonlyachieves
costsavings(forexample,throughreducedpowerandcoolingcostsofmoreenergy-efficient
products)butsupportsthegreenagenda.In2008theUSGovernmentimplementedablanket
requirementtoprocureonlyElectronicProductEnvironmentalAssessmentTool(EPEAT™)24
registereddesktopcomputers,laptopsandmonitors.TheUSEnvironmentalProtection
Agency,usingconservativeassumptions,estimatesthatthegovernment’spurchaseofEPEAT™
registeredcomputersovera4-yeartimeframewill:
•saveUS$71.4millioninenergycosts
•reduceenergyuseby824gigawatthours,enoughtopower72,630householdsforayear
•reducegreenhousegasemissionsby64,700metrictonsofcarbonequivalent,whichisequal
toremoving51,317carsfromtheroadforayear.25
Thesesubmissionsrecommendedthatasetofenvironmentalcriteriabeestablishedfor
AustralianGovernmentICTpurchases,andthatitbemademandatoryforgovernment
purchasingofficerstousethecriteriawhenevaluatingtenders.
OthergreeninitiativesthatindustryconsideredtheGovernmentcouldadoptinclude:
•purchasingproductswithahighENERGYSTAR®26andEPEAT™rating
•usingenergycalculatorstocomparepotentialsavings
•enablingpowermanagementsettingsacrossclientPCsystems
•implementingvirtualisationandconsolidationtechnologiestomaximiseresources
•adoptingmobilecomputingplatformsandworkpractices
•adoptingcentraliseddeliverymodelsforapplications,operatingsystemsanddata.
23 Note that industry tended to use the terms ‘green’ and ‘sustainable’ interchangeably, however, the prevailing terminology in the industry is ‘green ICT’.
24 EPEAT™ is a system to help purchasers in the public and private sectors evaluate, compare and select desktop computers, notebooks and monitors based on their environmental attributes. EPEAT™ also provides a clear and consistent set of performance criteria for the design of products, and provides an opportunity for manufacturers to secure market recognition for efforts to reduce the environmental impact of their products.
25 See http://www.epeat.net/Docs/White%20House%20Thanks%20EPEAT%20Mfgrs%20(3-21-07).pdf
26 ENERGY STAR® is an international standard for energy-efficient electronic equipment. It was created by the US Environmental Protection Agency in 1992 and has now been adopted by several countries around the world, including Australia.
Chapter Two:ViewsfromoutsidetheAustralianGovernment ��
2.11. SECURITY CLEARANCES
Fivesubmissionscommentedthatthereisnoconsistentandstandardisedwhole-of-
governmentapproachtotheimplementationofpolicies,proceduresandprocessesin
managingsecurityclearances.Thishasresultedineachagencyestablishingitsownapproach
underthebroadAustralianGovernmentguidelines.Often,securityclearancesissuedbyone
agencyarenotacceptedbyanotherandclearancescannotbetransferred.Theybelievedthat
theimplicationsareverysignificantforcompaniessupportingdifferentgovernmentagencies,
includingcost,staffwaitingtimeinre-clearingfornewagencies,andreducedproductivity.They
alsoconsideredthattheabilitytouniformlymanagesecurityandidentitymanagementacross
governmentagencieswouldsimplifyandprovidesignificantsavingsinadministration.
2.12. BEST PRACTICES
2.12.1. Coordinated management and procurement
AfewsubmissionsfeltthattheGovernmentcouldbenefitfromusingbestpracticesadoptedby
theUKOfficeofGovernmentCommerce(OGC).Aspartofaninitiativetoimprovestandardsand
procurementcapabilityacrossthecentralgovernment,OGCdividespurchasingspecialistsby
productline.Ithasalsosetupaseparatewebsite(http://www.ogcbuyingsolutions.gov.uk/)
whichprovidesgovernmentwithacentralcatalogueofnationallyapprovedproductsand
servicesthatmeetgovernmentprocurementguidelines.Bypurchasinghardwareproducts
withacommonsetofspecificationsacrossgovernment(asopposedtoacrossagency),theUK
Governmenthasbeenabletosaveupto47%onPCs,laptopsandmonitors.27
AfewsubmissionsalsofeltthattheGovernmentcouldbenefitbyadoptingacquisitionreforms
thathavebeenimplementedintheUS.Thesehaveresultedinsubstantialsavingswhere
softwarelicencesarebeingusedmoreefficientlyacrosslargefederaldepartmentsthrough
‘acquisitionmaturitymodels’thatbenchmarkacquisitioncapabilitiesagainstestablished
standards.(TheUKMinistryofDefencehasusedthisapproachforacquiringweaponssystems.)
2.12.2. Shared services
Asdiscussedin2.2,anotherpracticethatindustryfelttheGovernmentcouldadoptisshared
services.Thispracticehasbeenadoptedbybusinessesandattemptedbyseveralgovernments
(bothstateandinternational),withvaryingdegreesofsuccess.
27 Office of Government Commerce (2006), ‘How can we help you? Saving money on IT hardware’, http://www.ogc.gov.uk/documents/CP0146ITHardware.pdf
Chapter Two:ViewsfromoutsidetheAustralianGovernment��
2.12.3. More innovative procurement and contracting
AfewsubmissionsfeltthattheGovernmentcouldbenefitfromhavingmoreinnovative
approachestoprocurement.Theynotedthattherehasbeenashiftfromrequestsbasedon
technologyorspecificationstorequestsbasedonbusinessoutcomes,particularlyintheprivate
sector.Thisenablesvendorstobemorecreativeandflexible,andincreasesengagement.
Afewalsopointedoutthesubstantialsavingsthate-auctionscanachieve.Forexample,the
UKNationalHealthServicePurchasingandSupplyAgencyrenewedits£40millionbudgeted
requirementforICThardwarethroughane-auction;thesuccessfulsupplierwasabletooffera
£12.7million(31%)savingoverthepreviouscontract.
2.12.4. Improved vendor engagement
Afewsubmissionsalsoidentifiedearlyandongoingengagementofvendorsasanotherarea
wheretheGovernmentcouldobtainbenefits.Forexample,theAIIA’sUKcounterpart,Intellect,
offersanumberofservicestofacilitateearlyinteractionandcloseconsultationbetween
agenciesandindustrytoachievebetteroutcomes.Intellect’sConceptViabilityserviceallows
agenciestogetindustryfeedbackattheconceptstagetoallowearlyanalysisofcosts,risks
andimplementationoptions.Intellectalsoactivelysupportsjointgovernment–industrywork
oncostreduction,deliveryandprocurementeffectiveness.TheQueenslandStateGovernment
hasestablishedasinglevoicefortheICTindustrytoengagewithgovernmentthroughthe
ICTIndustryWorkgroup.ThisgroupcomprisesrepresentativesfromtheAustralianComputer
Society,theAIIAandSoftwareQueensland,whojointlyrepresent12ICTbodies.
2.12.5. Standardised approaches
Somesubmissionsfeltthatprivatesectororganisationsand,toalesserextent,other
governmentsaremoreadvancedinleveragingstandardarchitecturesandbusinessprocesses.
AfewfeltthattheapproachtakenbytheUSGovernmenttooptimiseitsICTinfrastructure,
includingdesktop,communicationsanddatacentres,couldprovideagoodframeworkforthe
Government.OnecompanymentionedthatallgovernmentagenciesinSingaporewillhavea
standardICToperatingenvironmentby2010,whichwillprovidesignificantcostsavingswhile
enhancingoperatingefficiencyandcorporateidentity.
SixsubmissionsmentionedthattheGovernmentwouldbenefitfromadoptingstandardservice
managementsuchasITIL®.OneindustrysubmissioncommentedthattheVictorianState
RevenueOfficehasreduceditsICTbudgetby16.5%sinceachievingITIL®compliancein2005.
Afewsubmissionsalsotalkedaboutothergovernmentsadoptingcommonstandards.
Forexample,governmentsaroundtheworld,mostnotablytheUS,Japan,theUKandThe
Netherlands,havecollaboratedonandadoptedtheExtensibleBusinessReportingLanguage
(XBRL®)datastandard.
Chapter Two:ViewsfromoutsidetheAustralianGovernment ��
2.12.6. Single government entry points
Somesubmissionsidentifiedtheworkofothergovernmentsincreatingsinglepointsofentryfor
citizensandsuggestedthattheGovernmentconsidersimilarmodels.Forexample,theypointed
toNewYorkCity’ssingleentrypointforcitizens,andServiceCanada’sone-stop,‘single-window,
multi-channelled’servicenetworktoimproveafter-hoursaccesstogovernmentservices.
2.12.7. Embracing open source solutions
OnecompanypointedtotheGovernmentofBrazilasanadministrationthatisdeterminedto
effectivelyusethelatestICTtechnologiestoovercomedistanceandsocioeconomicchallenges
andprovidebestoutcomesforitscitizens.Itismakingsomeoftheworld’slargestinvestments
inopensourcesoftware,investingininfrastructureanddeliveringservicesacrossmultimedia.
AnothercompanypointedtotheUSDepartmentofDefense,whichadvocatesopensource
softwareasanintegralcomponentofitscollectiveICTenterpriseenvironment.
2.12.8. Focus on sustainability
Somesubmissionsalsopointedtothefactthatmanycompaniesarefocusedon
sustainabilitypracticestolowercosts,increaseshareholdervalueandgaincompetitive
advantage.Practicesinclude:
•bettermonitoringofpowerconsumption
•targetingdatacentresforcostreductionactivities
•allowingemployeestotele-work.
2.12.9. Consideration of other capability sourcing options
SomesubmissionssuggestedthattheGovernmentcouldbemoreflexibleandstrategicwith
sourcingoptions,forexample,byactivelysupportingnear-shoringandoffshoring.
��
Chapter Three:Summaryofsurveyfindings ��
chaPteR �: summaRy of suRvey findings
3.1. SURVEY APPROACH
Aspartofthereview,asurveyofagencies’ICTspendingwasundertakentounderstandthe
totalICTspendoftheAustralianGovernment(theGovernment)andtoexamineagencyICT
costsacrossarangeofareasincludingdesktops,websites,financialmanagementinformation
systems,humanresourcemanagementinformationsystems,grantsmanagementsystems,
telecommunications,andICTenergyusage.
Thesurveywasbasedonthe2002–03AustralianBureauofStatistics(ABS)Government
TechnologySurvey(GTS).TheABSsurveywasusedtoenablecomparativeanalysisof
expenditureovertime,asitwasthemostrecentcomprehensivesurveyoftheGovernment’sICT
expenditure.AppendixCcontainsanoutlineofthereview’ssurveymethodology.
Eighty-sixresponses28werereceivedcovering91ofthe100Financial Management and
Accountability Act 1997(FMAAct)agenciesthatexistedatthetimethereviewsurveywas
issued.Theresponsesvariedintermsofcompletionandquality,highlightingtheabsenceofa
consistentapproachbyagenciestotheclassificationofsomeoftheirICTcosts.Nonetheless,
thesurveyprovidedsignificantinsightsintoagencies’managementoftheirICTcosts.
Forthepurposesofanalysisofthesurveyagenciesweregroupedintothefollowing
sizecategories:
•Large:agencies(includingDefence)withover$20millionofICTspendin2007–08
(29intotal)
•Medium:agencieswithbetween$2millionand$20millionofICTspendin2007–08
(26intotal)
•Small:agencieswithlessthan$2millionofICTspendin2007–08(29intotal).
3.2. SURVEY RESULTS
3.2.1. Total government spend on ICT
TheGovernmenthasnothadconclusivedataonthevalueofitsannualICTspendsince
theABS2002–03GTSestimatedtheFederalGovernmentICTspend(includingspendingby
Commonwealth Authorities and Companies Act 1997agenciesand38universities)at
$4.2billion.Priortothesurveyundertakenbythereview,bestestimateshadputthe
28 Two agencies that responded have recently been incorporated into another agency. They have been treated as one agency for the purposes of analysis of total ICT spend (bringing the sample size to 84 agencies); however, they have been treated as separate agencies in the analysis of financial and human resource information management systems and energy usage.
Chapter Three:Summaryofsurveyfindings��
Government’scurrentICTspendataround$6billionperannum.Thereview’ssurveyidentified
thatFMAActagenciesspent$4.3billiononICTin2007–08.Basedonthisresult,total
governmentICTspendacrosstheGeneralGovernmentSectorfor2007–08isestimatedat$5.3
billionperannum(excludinguniversities),usingthemultiplierderivedfromtheABSsurvey.
Similarly,theGovernmenthasnothadconclusivedataonthesizeofitsICTworkforcesincethe
ABS2002–03survey,andthatsurveyonlyaddressedtheAPSworkforceanddidnotcaptureICT
contractornumbers.ThereviewsurveyidentifiedthattheICTworkforceofFMAActagencies
at30June2008was13,379(including3,135ICTcontractors).Basedonthisresult,thetotal
governmentICTworkforceacrosstheGeneralGovernmentSectorat30June2008isestimated
at15,751,usingthemultiplierderivedfromtheABSsurvey.
Tables3.1and3.2summarisetheaggregatedatacollectedfromFMAActagenciesinthesurvey.
CABINET-IN-CONFIDENCE
CABINET-IN-CONFIDENCE 40
total government ICT spend across the General Government Sector for 2007–08 is estimatedat $5.3 billion per annum (excluding universities), using the multiplier derived from the ABSsurvey.
Similarly, the Government has not had conclusive data on the size of its ICT workforce sincethe ABS 2002–03 survey, and that survey only addressed the APS workforce and did notcapture ICT contractor numbers. The review survey identified that the ICT workforce of FMAAct agencies at 30 June 2008 was 13,379 (including 3,135 ICT contractors). Based on thisresult, the total government ICT workforce across the General Government Sector at30 June 2008 is estimated at 15,751, using the multiplier derived from the ABS survey.
Tables 3.1 and 3.2 summarise the aggregate data collected from FMA Act agencies in thesurvey.
Table 3.1 - Total expenses for FMA Act agencies 2002–03 $m 2006–07 $m 2007–08 $m Employee costs 668.4 819.7 946.3
Other operating expenses 1,448.7 2,138.6 2,309.7 Total operating expenses 2,117.1 2,958.3 3,256.1
Capital expenses 677.3 862.2 1,034.7Total ICT spend (operating and capital expenses)
2,794.3 3,820.5 4,290.7
Percentage change in total FMA Act agencies’ ICT spend
36.7% 12.3%
Total FMA Act agencies’ operating expenses
45,846.2 61,575.4 66,792.9
Percentage change in total FMA Act agencies’ operating expenses
34.3% 8.5%
ICT spend as a percentage of total operating expenses
6.1% 6.2% 6.4%
Note: Operating expenses exclude depreciation expenses.
Table 3.1 – Total expenses for FMA Act agencies
Chapter Three:Summaryofsurveyfindings ��
CABINET-IN-CONFIDENCE
41 CABINET-IN-CONFIDENCE
Table 3.2 - Total employees and contractors for FMA Act agencies 2002–03 2006–07 2007–08 ICT staff 8,142 9,730 10,244
ICT contractors(a) 3,138 3,135
Total ICT workforce 8,142 12,868 13,379
Total FMA Act agency staff 211,692 218,727 222,311
ICT staff and contractors as a percentage of total employees 3.8% 5.9% 6.0%
ICT spend per employee $15,906 $21,048 $23,257
(a) Note: ICT contractor numbers were not collected in the ABS 2002–03 GTS.
3.2.2. FMA Act agency ICT spend
Analysis of the survey pointed to a significant amount of ICT spend occurring within largeagencies. The 29 large agencies accounted for 94% of the total ICT spend of all FMA Actagencies in 2007–08. The next 26 agencies account for 5% of total ICT spend, while 29 smallagencies account for just 1% of ICT spend (see Figure 3.1).
Figure 3.1 – Break-down of total ICT spend 2007–08
Analysis of the survey indicated a wide variety of ICT spend by agencies as a proportion oftheir total operating expenses. Agency ICT spending as a proportion of their total operatingexpenses vary from 4% to 54%. This large variance in agency responses reflects both thevariety of agency business operations that are reliant on ICT and the extent of projectrelated activity being undertaken by individual agencies.
Analysis also indicated that agencies are spending a significant part of their ICT spend onbusiness as usual (BAU) activities. Agencies reported spending an average of around 77% of
Large94%
Medium5%
Small1%
3.2.2. FMA Act agency ICT spend
AnalysisofthesurveypointedtoasignificantamountofICTspendoccurringwithinlarge
agencies.The29largeagenciesaccountedfor94%ofthetotalICTspendofallFMAAct
agenciesin2007–08.Thenext26agenciesaccountfor5%oftotalICTspend,while29small
agenciesaccountforjust1%ofICTspend(seeFigure3.1).
CABINET-IN-CONFIDENCE
41 CABINET-IN-CONFIDENCE
Table 3.2 - Total employees and contractors for FMA Act agencies 2002–03 2006–07 2007–08 ICT staff 8,142 9,730 10,244
ICT contractors(a) 3,138 3,135
Total ICT workforce 8,142 12,868 13,379
Total FMA Act agency staff 211,692 218,727 222,311
ICT staff and contractors as a percentage of total employees
3.8% 5.9% 6.0%
ICT spend per employee $15,906 $21,048 $23,257 (a) Note: ICT contractor numbers were not collected in the ABS 2002–03 GTS.
3.2.2. FMA Act agency ICT spend
Analysis of the survey pointed to a significant amount of ICT spend occurring within largeagencies. The 29 large agencies accounted for 94% of the total ICT spend of all FMA Actagencies in 2007–08. The next 26 agencies account for 5% of total ICT spend, while 29 smallagencies account for just 1% of ICT spend (see Figure 3.1).
Figure 3.1 – Break-down of total ICT spend 2007–08
Analysis of the survey indicated a wide variety of ICT spend by agencies as a proportion oftheir total operating expenses. Agency ICT spending as a proportion of their total operatingexpenses vary from 4% to 54%. This large variance in agency responses reflects both thevariety of agency business operations that are reliant on ICT and the extent of projectrelated activity being undertaken by individual agencies.
Analysis also indicated that agencies are spending a significant part of their ICT spend onbusiness as usual (BAU) activities. Agencies reported spending an average of around 77% oftheir total ICT spend on BAU activities and 23% on project activities to create new capability
Large94%
Medium5%
Small1%
Table 3.2 – Total employees and contractors for FMA Act agencies
Figure 3.1 – Break-down of total ICT spend 2007–08
Chapter Three:Summaryofsurveyfindings��
AnalysisofthesurveyindicatedawidevarietyofICTspendbyagenciesasaproportionoftheir
totaloperatingexpenses.AgencyICTspendingasaproportionoftheirtotaloperatingexpenses
varyfrom4%to54%.Thislargevarianceinagencyresponsesreflectsboththevarietyofagency
businessoperationsthatarereliantonICTandtheextentofproject-relatedactivitybeing
undertakenbyindividualagencies.
AnalysisalsoindicatedthatagenciesarespendingasignificantpartoftheirICTspendonbusiness
asusual(BAU)activities.Agenciesreportedspendinganaverageofaround77%oftheirtotalICT
spendonBAUactivitiesand23%onprojectactivitiestocreatenewcapabilityin2007–08
(seeFigure3.2).Thiscouldindicatethatagenciesaretrappedbytheheavyburdenofmaintaining
legacyhardwareandsoftware.ThereisawiderangeofspendonBAUandprojectactivityacross
agencies.Somelargeagencieshavesignificantproject-relatedworkandareonlyspending45%on
BAUactivitieswhileothersarespendingupto95%oftheirtotalICTspendonBAU.
CABINET-IN-CONFIDENCE
CABINET-IN-CONFIDENCE 42
in 2007–08 (see Figure 3.2). This could indicate that agencies are trapped by the heavyburden of maintaining legacy hardware and software. There is a wide range of spend on BAUand project activity across agencies. Some large agencies have significant project relatedwork and are only spending 45% on BAU activities while others are spending up to 95% oftheir total ICT spend on BAU.
Figure 3.2 – Average BAU:Project split
3.2.3. FMA Act agency ICT staffing
Analysis of the survey data indicated that workforce costs represent, on average, 47% ofagencies’ total ICT operating costs. It also indicated that agencies rely heavily on the ACTlabour market to supply their ICT workforce, with 79% of total ICT staff located in the ACT.
The survey data also pointed to a continued and significant reliance on ICT contractors tosupplement their ICT staff. The data indicated that 23% of agencies’ ICT workforce was madeup of ICT contractors in 2007–08, a slight fall from 24% in 2006–07 (see Figure 3.3). The dataalso indicated that, on average, ICT contractors cost around $186,000 per annum, which is$94,000 per annum more than the average loaded cost of FMA Act agency ICT staff. Analysisof the survey data also indicated that agencies that have significantly outsourced their ICTenvironments rely more on ICT contractors than agencies with predominantly insourced ICTarrangements. It also indicated that there is a wide range of reliance on ICT contractors, withsome large agencies operating with up to 63% contractors, while others use only 8%contractors in their ICT workforce.
80%
77%
20%
23%
0% 20% 40% 60% 80% 100%
2006-07
2007-08
BAU
Project
3.2.3. FMA Act agency ICT staffing
Analysisofthesurveydataindicatedthatworkforcecostsrepresent,onaverage,47%of
agencies’totalICToperatingcosts.ItalsoindicatedthatagenciesrelyheavilyontheACTlabour
markettosupplytheirICTworkforce,with79%oftotalICTstafflocatedintheACT.
ThesurveydataalsopointedtoacontinuedandsignificantrelianceonICTcontractorsto
supplementtheirICTstaff.Thedataindicatedthat23%ofagencies’ICTworkforcewasmade
upofICTcontractorsin2007–08,aslightfallfrom24%in2006–07(seeFigure3.3).Thedata
alsoindicatedthat,onaverage,ICTcontractorscostaround$186,000perannum,whichis
Figure 3.2 – Average BAU: Project split
Chapter Three:Summaryofsurveyfindings ��
$94,000perannummorethantheaverageloadedcostofFMAActagencyICTstaff.Analysis
ofthesurveydataalsoindicatedthatagenciesthathavesignificantlyoutsourcedtheirICT
environmentsrelymoreonICTcontractorsthanagencieswithpredominantlyinsourcedICT
arrangements.ItalsoindicatedthatthereisawiderangeofrelianceonICTcontractors,with
somelargeagenciesoperatingwithupto63%contractors,whileothersuseonly8%contractors
intheirICTworkforce. CABINET-IN-CONFIDENCE
43 CABINET-IN-CONFIDENCE
Figure 3.3 – Total FMA Act agency ICT in-house and contractor workforce
Analysis of the survey data highlighted that there was a shortage of around 1,000 ICT skilledworkers (or 7% of the total ICT workforce) across FMA Act agencies at 30 June 2008. Threelarge agencies represented around 86% of the shortfall. The skills that were most in demandincluded software engineers (212), business analysts (157), analyst programmers (80),support technicians (92), project managers (74) and hardware technicians (36).
3.2.4. Desktops
FMA Act agencies’ spend on desktops represented around 10% of their total ICT spend. Totaldesktop spend across FMA Act agencies increased by 4%, from $445.4 million in 2006–07 to$461.5 million in 2007–08. The total number of desktops increased by 1%, from 343,510 in2006–07 to 347,783 in 2007–08.
The data provided by agencies showed significant variations in spend per desktop betweenagencies. Desktop costs vary from around $1,000 to around $3,500 per desktop. Thisindicates that there is potential for many agencies to drive efficiencies in this area.
Analysis of agency survey responses also indicated that there may be substantial underutilisation of their desktop fleet, with agencies reporting significantly more desktop devicesthan there are employees. The data showed that there are approximately 1.6 desktopdevices (including laptops) for every APS employee across FMA Act agencies.
3.2.5. Websites
Analysis of the review survey indicated that agencies spent around $80 million across 611websites in 2007–08, excluding Defence. These costs represent around a reported 2% oftotal ICT spend. Agencies reported a wide variety website costs, ranging from around$10,000 per website to around $1.5 million per website.
76%
77%
24%
23%
0% 20% 40% 60% 80% 100%
2006-07
2007-08
In-house ICTstaff
Contract ICTstaff
Analysisofthesurveydatahighlightedthattherewasashortageofaround1,000ICTskilled
workers(or7%ofthetotalICTworkforce)acrossFMAActagenciesat30June2008.Three
largeagenciesrepresentedaround86%oftheshortfall.Theskillsthatweremostindemand
includedsoftwareengineers(212),businessanalysts(157),analystprogrammers(80),support
technicians(92),projectmanagers(74)andhardwaretechnicians(36).
3.2.4. Desktops
FMAActagencies’spendondesktopsrepresentedaround10%oftheirtotalICTspend.Total
desktopspendacrossFMAActagenciesincreasedby4%,from$445.4millionin2006–07to
$461.5millionin2007–08.Thetotalnumberofdesktopsincreasedby1%,from343,510in
2006–07to347,783in2007–08.
Thedataprovidedbyagenciesshowedsignificantvariationsinspendperdesktopbetween
agencies.Desktopcostsvaryfromaround$1,000toaround$3,500perdesktop.Thisindicates
thatthereispotentialformanyagenciestodriveefficienciesinthisarea.
Figure 3.3 – Total FMA Act agency ICT in-house and contractor workforce
Chapter Three:Summaryofsurveyfindings�0
Analysisofagencysurveyresponsesalsoindicatedthattheremaybesubstantialunder-
utilisationoftheirdesktopfleet,withagenciesreportingsignificantlymoredesktopdevices
thanthereareemployees.Thedatashowedthatthereareapproximately1.6desktopdevices
(includinglaptops)foreveryAPSemployeeacrossFMAActagencies.
3.2.5. Websites
Analysisofthereviewsurveyindicatedthatagenciesspentaround$80millionacross611
websitesin2007–08,excludingDefence.Thesecostsrepresentaroundareported2%oftotal
ICTspend.Agenciesreportedawidevarietywebsitecosts,rangingfromaround$10,000per
websitetoaround$1.5millionperwebsite.
3.2.6. Financial management information systems
AnalysisofagencyresponsesindicatedthatSAPandTechnologyOnearethepredominant
suppliersintheAustralianGovernmentmarketforfinancialmanagementinformationsystems
(FMIS).SAPisusedby29agencies,particularlyinlargeagencies.TechnologyOne’sFinanceOne
systemisusedby18agencies,particularlyinmediumsizedagencies.Theremainingmarketis
sharedbyasmallnumberofotherproviders,asindicatedinFigure3.4.
CABINET-IN-CONFIDENCE
CABINET-IN-CONFIDENCE 44
3.2.6. Financial management information systems
Analysis of agency responses indicated that SAP and Technology One are the predominantsuppliers in the Australian Government market for financial management informationsystems (FMIS). SAP is used by 29 agencies, particularly in large agencies. Technology One’sFinance One system is used by 18 agencies, particularly in medium sized agencies. Theremaining market is shared by a small number of other providers, as indicated in Figure 3.4.
Figure 3.4 – Number of agencies using FMIS
Analysis of the survey data pointed to wide variations in agencies costs of operating theirFMIS. In particular, analysis indicated that there was some correlation between the very lowcost per transaction of around 10 cents to 30 cents and a high volume of transactions butnot complete correlation. For agencies with a lower transaction volume, the cost pertransaction of their FMIS ranged widely from around 10 cents to over $30. This also indicatesscope for considerable efficiency improvements.
Analysis of the data also revealed wide variations in the extent of customisation of agenciesFMIS. Sixty nine agencies reported using systems with no or minimal customisation, whileanalysis of the data from the remaining 17 agencies indicated an exponentially increasingamount of customisation.
3.2.7. Human resource management information systems
Analysis of the data indicated that Aurion and SAP are the predominant players in theAustralian Government market for human resource management information systems(HRMIS). Aurion is used by 37 agencies, while SAP HR is used by 17 agencies (see Figure 3.5).
SUN, 3ACCPAC, 5
Attache, 2
Finance One, 18
Great Plains, 9
MYOB, 3Oracle, 3
QSP, 6
SAP, 29
Other, 4
Not Specif ied, 4
AnalysisofthesurveydatapointedtowidevariationsinagenciescostsofoperatingtheirFMIS.
Inparticular,analysisindicatedthattherewassomecorrelationbetweentheverylowcostper
transactionofaround10cto30candahighvolumeoftransactionsbutnotcompletecorrelation.
Foragencieswithalowertransactionvolume,thecostpertransactionoftheirFMISrangedwidely
fromaround10ctoover$30.Thisalsoindicatesscopeforconsiderableefficiencyimprovements.
Figure 3.4 – Number of agencies using FMIS
Chapter Three:Summaryofsurveyfindings ��
Analysisofthedataalsorevealedwidevariationsintheextentofcustomisationofagencies
FMIS.Sixty-nineagenciesreportedusingsystemswithnoorminimalcustomisation,while
analysisofthedatafromtheremaining17agenciesindicatedanexponentiallyincreasing
amountofcustomisation.
3.2.7. Human resource management information systems
AnalysisofthedataindicatedthatAurionandSAParethepredominantplayersinthe
AustralianGovernmentmarketforhumanresourcemanagementinformationsystems
(HRMIS).Aurionisusedby37agencies,whileSAPHRisusedby17agencies(seeFigure3.5). CABINET-IN-CONFIDENCE
45 CABINET-IN-CONFIDENCE
Figure 3.5 – Number of agencies using HRMIS
Agencies reported wide variations in the cost of supporting their HRMIS with the cost peremployee ranging from $10 to $500, again indicating the scope for significant efficiencyimprovements.
There were also wide variations in the extent of customisation of agencies HRMIS. Seventyone agencies reported using systems with no or minimal customisation, while analysis ofdata from the remaining 15 agencies indicated an exponentially increasing amount ofcustomisation.
3.2.8. Grants management systems
The number of grants management systems (GMS) used by FMA Act agencies has declinedfrom 150 to 124 since 2006. Some of this decline could be accounted for by agenciesrationalising the number of systems they use. The overwhelming majority of systems are stillpaper based, Excel or custom developed and manage discrete, stand alone grant programs.
The survey data showed that the number of commercial off the shelf products hasincreased. However, operating expenditure on grants systems is relatively concentrated.Only three agencies reported GMS spend exceeding $1 million per year, with the largestspend being $10.6 million per year. Given the overall limited spend on GMS (0.7% of totalICT spend in 2007–08) there does not appear to be any substantial opportunities for wholeof government action in regard to GMS that would have a significant impact on overall ICTspend.
3.2.9. Telecommunications
Agency responses indicated that their ICT spend on telecommunications was$267.7 million in 2006–07, increasing to $335.9 million in 2007–08. This represents 7% oftotal ICT expenditure for 2006–07 and 7.8% for 2007–08.
The data highlighted significant duplication of telecommunications point to point linksdomestically, and in the number of links to international locations across government, a
Aurion, 37
CHRIS, 5MicroPay, 3Not specif ied, 7
Other, 7
Outsourced, 3
Peoplesoft, 7
SAP, 17
AgenciesreportedwidevariationsinthecostofsupportingtheirHRMISwiththecostperemployee
rangingfrom$10to$500,againindicatingthescopeforsignificantefficiencyimprovements.
TherewerealsowidevariationsintheextentofcustomisationofagenciesHRMIS.Seventy-one
agenciesreportedusingsystemswithnoorminimalcustomisation,whileanalysisofdatafrom
theremaining15agenciesindicatedanexponentiallyincreasingamountofcustomisation.
3.2.8. Grants management systems
Thenumberofgrantsmanagementsystems(GMS)usedbyFMAActagencieshasdeclined
from150to124since2006.Someofthisdeclinecouldbeaccountedforbyagencies
rationalisingthenumberofsystemstheyuse.Theoverwhelmingmajorityofsystemsarestill
paper-based,Excelorcustom-developedandmanagediscrete,stand-alonegrantprograms.
Figure 3.5 – Number of agencies using HRMIS
Chapter Three:Summaryofsurveyfindings��
Thesurveydatashowedthatthenumberofcommercialoff-the-shelf(COTS)productshas
increased.However,operatingexpenditureongrantssystemsisrelativelyconcentrated.Only
threeagenciesreportedGMSspendexceeding$1millionperyear,withthelargestspend
being$10.6millionperyear.GiventheoveralllimitedspendonGMS(0.7%oftotalICTspendin
2007–08)theredoesnotappeartobeanysubstantialopportunitiesforwhole-of-government
actioninregardtoGMSthatwouldhaveasignificantimpactonoverallICTspend.
3.2.9. Telecommunications
AgencyresponsesindicatedthattheirICTspendontelecommunicationswas$267.7millionin
2006–07,increasingto$335.9millionin2007–08.Thisrepresents7%oftotalICTexpenditure
for2006–07and7.8%for2007–08.
Thedatahighlightedsignificantduplicationoftelecommunicationspoint-to-pointlinks
domestically,andinthenumberoflinkstointernationallocationsacrossgovernment,aresult
ofagenciesindividuallyimplementingtheirtelecommunicationsarrangements.In2007–08
therewere225domesticagencylinksover10routesand37linksbetweenSydneyandCanberra
alone;internationally,therewerefivelinksfromfourdifferentagenciesintoJakartaandfive
linksfromthreedifferentagenciesintoLondon.
Tables3.3and3.4belowindicatethenumberoflinksbetweenCanberraandAustralianstate
capitalcitiesandinternationallinksfromAustralia,andthetotalcostofthoselinks.
Analysisofagencysurveyresponsesalsoidentified69networkgatewayswithvendorsproviding
similarservicesacrossmultipleagencieswithoutanyaggregationofcontractualarrangements.
Table3.5indicatesthenumberofnetworkgatewaysprovidedbyarangeofvendors.
CABINET-IN-CONFIDENCE
CABINET-IN-CONFIDENCE 46
result of agencies individually implementing their telecommunications arrangements. In2007–08 there were 225 domestic agency links over 10 routes and 37 links between Sydneyand Canberra alone; internationally, there were five links from four different agencies intoJakarta and five links from three different agencies into London.
Tables 3.3 and 3.4 below indicate the number of links between Canberra and Australianstate capital cities and international links from Australia, and the total cost of those links.
Table 3.3 – Domestic telecommunications links Number Total cost 2006–07
$mTotal cost 2007–08
$mCanberra – Sydney 37 2.7 2.8
Canberra – Melbourne 28 0.8 0.7
Canberra – Adelaide 21 0.6 0.6
Canberra – Brisbane 20 0.7 0.7
Canberra – Perth 19 0.5 0.5
Table 3.4 –Telecommunications links to international locations Number Total cost 2007–08
$mJakarta 5 2.2
London 5 1.2
Honiara 4 0.3
Port Moresby 3 0.3
Bangkok 3 0.5
Analysis of agency survey responses also identified 69 network gateways with vendorsproviding similar services across multiple agencies without any aggregation of contractualarrangements. Table 3.5 indicates the number of network gateways provided by a range ofvendors.
Table 3.3 – Domestic telecommunications links
Chapter Three:Summaryofsurveyfindings ��
CABINET-IN-CONFIDENCE
CABINET-IN-CONFIDENCE 46
result of agencies individually implementing their telecommunications arrangements. In2007–08 there were 225 domestic agency links over 10 routes and 37 links between Sydneyand Canberra alone; internationally, there were five links from four different agencies intoJakarta and five links from three different agencies into London.
Tables 3.3 and 3.4 below indicate the number of links between Canberra and Australianstate capital cities and international links from Australia, and the total cost of those links.
Table 3.3 – Domestic telecommunications links Number Total cost 2006–07
$mTotal cost 2007–08
$mCanberra – Sydney 37 2.7 2.8
Canberra – Melbourne 28 0.8 0.7
Canberra – Adelaide 21 0.6 0.6
Canberra – Brisbane 20 0.7 0.7
Canberra – Perth 19 0.5 0.5
Table 3.4 –Telecommunications links to international locations Number Total cost 2007–08
$mJakarta 5 2.2
London 5 1.2
Honiara 4 0.3
Port Moresby 3 0.3
Bangkok 3 0.5
Analysis of agency survey responses also identified 69 network gateways with vendorsproviding similar services across multiple agencies without any aggregation of contractualarrangements. Table 3.5 indicates the number of network gateways provided by a range ofvendors.
CABINET-IN-CONFIDENCE
47 CABINET-IN-CONFIDENCE
Table 3.5 - Network gateway vendors Organisation Number of gateways Verizon 27
Macquarie Telecom 10
Cybertrust 9
Telstra 9
EDS 4
Other 10
3.2.10. Energy
Seventy two agencies responded to the survey questions on energy usage and the cost oftheir ICT estate (agencies with less than 50 staff were not required to respond to thisquestion). There was generally a poor response, with many agencies unable to providemeaningful or consistent data on their ICT energy usage.
Thirty agencies provided data on energy consumption and costs for 2007–08. However,35 agencies did not provide any data regarding their energy consumption or cost, and afurther seven provided inconsistent data.
Where agencies provided responses to ICT energy consumption and cost the responsesindicated that ICT energy consumption increased by 3%, from 162.4 gigawatts in 2006–07 to167.6 gigawatts in 2007–08. However, over this period agencies reported that ICT energycosts increased by 16%, from $18.1million in 2006–07 to $21.0 million in 2007–08,indicating significant growth in energy cost.
Twenty three agencies indicated that they had an energy plan, while 49 agencies advisedthat they did not. Of the 23 agencies that reported having an energy plan in place,13 indicated that their energy plan included an ICT energy component; however, only six ofthose agencies were able to provide meaningful data in relation to the questions asked inthe survey.
Ten agencies indicated that their ICT energy consumption was not monitored or reported.
3.2.10. Energy
Seventy-twoagenciesrespondedtothesurveyquestionsonenergyusageandthecostoftheir
ICTestate(agencieswithlessthan50staffwerenotrequiredtorespondtothisquestion).There
wasgenerallyapoorresponse,withmanyagenciesunabletoprovidemeaningfulorconsistent
dataontheirICTenergyusage.
Thirtyagenciesprovideddataonenergyconsumptionandcostsfor2007–08.However,35
agenciesdidnotprovideanydataregardingtheirenergyconsumptionorcost,andafurther
sevenprovidedinconsistentdata.
Table 3.4 – Telecommunications links to international locations
Table 3.5 – Network gateway vendors
Chapter Three:Summaryofsurveyfindings��
WhereagenciesprovidedresponsestoICTenergyconsumptionandcosttheresponses
indicatedthatICTenergyconsumptionincreasedby3%,from162.4gigawattsin2006–07
to167.6gigawattsin2007–08.However,overthisperiodagenciesreportedthatICTenergy
costsincreasedby16%,from$18.1millionin2006–07to$21.0millionin2007–08,indicating
significantgrowthinenergycost.
Twenty-threeagenciesindicatedthattheyhadanenergyplan,while49agenciesadvisedthat
theydidnot.Ofthe23agenciesthatreportedhavinganenergyplaninplace,13indicatedthat
theirenergyplanincludedanICTenergycomponent;however,onlysixofthoseagencieswere
abletoprovidemeaningfuldatainrelationtothequestionsaskedinthesurvey.
TenagenciesindicatedthattheirICTenergyconsumptionwasnotmonitoredorreported.
Chapter Four:Keyfindings ��
chaPteR �: Key findingsAfterdetailedanalysisoftheevidenceobtainedfromwithinandoutsidetheAustralianGovernment
(theGovernment)andthesurveyresults,thereviewidentifiedthefollowingkeyfindings.
1. Thereisweakgovernanceofpan-governmentissuesrelatedtoICT.
2. AgencygovernancemechanismsareweakinrespectoftheirfocusonICTefficiencyand
anunderstandingoforganisationalcapabilitytocommission,manageandrealisebenefits
fromICT-enabledprojects.
3. Thebusinessasusual(BAU)ICTfundinginagenciesisnotsubjecttosufficientchallenge
andscrutiny.
4. ThereisadisconnectbetweenthestatedimportanceofICTandactionsinrelationto
ICTskills.
5. Thereisnowhole-of-governmentstrategicplanfordatacentres.Intheabsenceofsucha
plan,theGovernmentwillbeforcedintoaseriesofadhocinvestmentswhichwill,intotal,
costintheorderof$1billionmorethanacoordinatedapproachovera15-yearperiod.
6. ThegovernmentICTmarketplaceisneitherefficientnoreffective.
7. ThereisasignificantdisconnectbetweentheGovernment’soverallsustainability
agendaanditsabilitytounderstandandmanageenergycostsandthecarbonfootprint
ofitsICTestate.
Theremainderofthischaptersetsoutthesignificantevidencethatsupportsthesefindings.
4.1. WEAK GOVERNANCE OF PAN-GOVERNMENT ISSUES RELATED TO ICT
Thelackofavehicleforpoliticalleadershipandweakgovernanceofpan-governmentissues
relatedtoICT,coupledwithagencyautonomywithregardtoICTinvestments,hasledto
significantfragmentationandduplication.Theseissuesinclude:
• duplicationoftelecommunicationlinks,bothdomesticallyandinternationally–for
example,thereare37linksbetweenSydneyandCanberraalone,fivelinksfromfour
differentagenciesintoJakarta,andfivelinksfromthreedifferentagenciesintoLondon
• duplicationofgateways,with69gatewaysandanumberofcompanieshostingthe
gatewaysthatareprovidingmuchthesameservice,yetnoaggregationistakingplace–for
example,onesupplierprovided27gatewaysfortheGovernment
• lackofstandardisationincommonbusinessprocessesacrossgovernment
• afragmentedapproachtosecurityandauthentication,andidentityandaccessmanagement
• lackofadoptionoftheAustralianGovernmentArchitecturebecauseitisnotmandatory.
Chapter Four:Keyfindings��
ThereareexistingICTgovernancebodies(suchastheSecretaries’CommitteeonICT(SCICT),
ChiefInformationOfficerCommittee,BusinessProcessTransformationCommitteeandChief
InformationOfficerForum),buttheireffectivenessislimitedandtheyhavelittleinfluenceover
agencies.OnlysevenagenciesmadeanycommentontheSCICT,whileeightmadecomments
onotherforums.TheSCICThasneverhadamandateanddefinedrolefromMinisters.Overall,
thereisnostronglineofsightbetweenagencyICTactivityandwhole-of-governmentpriorities.
Furthermore,thecurrentgovernancearrangementsallowagenciestooptintowhole-of-
governmentICTinitiativesonaself-approvedbasisasthoughtheywereindependententities
whodidnotrelyonfundingbytheAustraliantaxpayer.
Thereisalsotoomuchvariationinthedegreeandqualityofinteractionbetweenpolicy
formulationandimplementation.Thereisabroadspectrumofpractice,rangingfromearly
andongoingconsultationbetweenpolicymakersandpolicyimplementerstonoconsultation
andannouncementsmadeinthepress,whichcomeasasurprisetothoseresponsiblefor
deliveryofthepolicy.Thisissueisexacerbatedbytheincreasingcomplexityofsomepolicies.
InconjunctionwiththedecisiontoadopttheGatewayReviewGate0(whichincludesthe
planningforbenefitsrealisation)inparticularcircumstancesratherthanasastandardgate,
therearerealdownstreamimplicationsandrisksforpolicyimplementationfrompoorly
consideredpolicydesign.
ThetotalityoftheseissuesultimatelyhinderstheabilityoftheGovernmenttoprovideefficient
andeffectivejoined-upICT-enabledservicestocitizensandbusinesses.
TheAustralianGovernmentInformationManagementOffice(AGIMO)hasproducedvarious
toolsandstandardstohelpagenciesuseICTtoimproveadministrationandservicedelivery,
andtoachievesomelevelofconsistencyacrosstheGovernment.Despitethis,therearevariable
viewsonthebusinessrelevanceandattractivenessoftheseAGIMOframeworks,andsome
AGIMOtoolsandstandardsarenotverywellknownandhencenotwidelyused.AGIMO’sremit
isweakasaconsequenceofalackofaclearmandate.
Finally,themechanismsfordetectingissuesandemergingtrendsandassessingwhetherthey
shouldbedealtwithatanagencyorwhole-of-governmentlevelaretooweak.Thisleadsto
adhoc,reactiveandsiloedresponses,asdemonstratedbythefollowingexamples.
• Theemergenceofdifferentclientcomputingarchitectureswillleadtoincreasedvariability
unlesscoordinatedactionistaken.
• Duplication,thelackofcommonstandardsandsharingofbestpracticeintheuseof
geospatialdatabytheGovernmentareissueswhichhaverecentlybeguntobeaddressed
onawhole-of-governmentbasis,butitshouldhavebeenresolvedmuchearlierbefore
agenciesbegantopursueindependentcoursesofaction.
Chapter Four:Keyfindings ��
• Thereisanemergingissuearounddatacentresandtheirlong-termviabilityinterms
ofspace,weight,cooling,power,thesustainabilityagenda,andcurrentandanticipated
availabilityrequirements.
• Thereisnowhole-of-governmentoversightofdevelopmentsintheICTindustry,including
activitiessuchasmergersandacquisitions,andthecapacityofcertainsupplierstofulfil
contractrequirements.
Thereisalsoevidenceofpocketsofbestpracticesandcommonprojectswithinthe
Government,butthereareweakmechanismsinplacetoshareandleveragethese.
4.2. AGENCY GOVERNANCE MECHANISMS ARE WEAK IN RESPECT OF FOCUS ON ICT EFFICIENCY AND UNDERSTANDING OF ORGANISATIONAL CAPABILITY TO COMMISSION, MANAGE AND REALISE BENEFITS FROM ICT-ENABLED PROJECTS
Thereviewfoundthatthereisnoformalcommonmethodofassessingagencycapability
tocommission,manageandrealisebenefitsfromICT-enabledprojects.Althoughexplicitly
askedtocommentonthis,mostagenciesansweredquestionsaroundcapabilityintermsof
ICTcapability,ratherthanorganisationalcapability.Thisholisticcapabilityrequirestheright
leadership,skills,processesandsystemswithinandacrossthebusinessandICTdomains.
Measurementofprojectbenefitsrealisationbyagenciesisalsoweak,despiteevidencethat
manyofthemhaveadoptedformalisedprojectmanagementmethodologies.Ofthe193
agencyprojectsdetailed,only5%ofprojectsreportedactualmeasurementofbenefitsand
comparedanticipatedbenefitswithactualbenefitsrealised.
Overall,thereappearstobealackofunderstandingofthetrade-offsbetweencommercial
off-the-shelf(COTS)solutionsandcustomisation.Forexample,17agenciesreported
customisingtheirfinancialmanagementinformationsystem(FMIS)bymorethan10%.Similar
customisationwasrecordedforHRsystems.Thisfindingisconsistentwithviewsfromoutside
theGovernment,where24organisationsindicatedthattherewerenospecificinhibitorsto
usingCOTSsolutionswithoutcustomisation.Another10commentedthattherewasoften
unnecessaryexcessivecustomisationbyagenciesleadingtoincreasedcostsandtheerosionof
theinherentbenefitsofusingCOTSproducts.
Therearealsodownstreamimplicationsformachineryofgovernment(MoG)changes.For
example,adecisionbyoneagencytogodownacustomisedroutecancreateafutureliability
foranotheragencywhenMoGchangesresultinwholeorpartofanagencybeingintegrated
withadifferentone.Thiscanresultinunnecessarycomplexityandsignificantcostswhen
integratingdisparateICTsystems.OneagencyidentifiedthatitsICTcostsrelatedtotherecent
MoGchangesareintheorderof$30milliontointegratesystemsandinfrastructure.
Chapter Four:Keyfindings��
4.3. THE BUSINESS AS USUAL ICT FUNDING IN AGENCIES IS NOT SUBJECT TO SUFFICIENT CHALLENGE AND SCRUTINY
Thereviewfoundthatveryfewagenciesactivelyandregularlymeasuretheefficiencyoftheir
ICTspending.ItisalsoevidentthattherearenocommonmetricsformeasuringICTefficiency
ortheeffectivenessofanagency’sICTspend.Forexample,athirdofagenciesdidnotprovide
anyinformationonefficiencyoreffectiveness,andmostdidnotarticulateplanstoaddressor
improveefficiency.Thismeansthatitisverydifficulttoobtainconsistentandmeaningfuldata
formanagementpurposes.
Thereisevidenceoftheunder-utilisationofsoftwareandhardwareassets.Forexample,thereare
1.6desktops(includinglaptops)foreachAPSstaffmember.Industryhasalsoproposedanumber
ofactionsthatcouldimproveassetutilisation,suchasaggregatingbandwidthandnetwork
infrastructure,consolidatingdatacentres,andrationalisingbusinesssystemsandapplications.
Withinbusinessasusual(BAU),therearesignificantvariationsincostsacrossagencies.
Forexample:
• desktopcostsrangedfrom$1,000to$3,500perdesktop
• financesystemscostspertransactionrangedfrom10ctomorethan$30
• HRsystemscostperemployeesupportedrangedfrom$10to$500
• thereare611reportedwebsites(excludingDefence),withcostsrangingfrom$10,000to
$1.5millionperwebsite.
TheaveragesplitbetweenBAUandprojectspendisalsotooheavilyskewedtowardstheformer
(77:23%),withlittlevariationintheaveragedependingonthesizeoftheagency.Relativetothe
proportionofspendBAUrepresents,thelevelofscrutinyofthisspendistoolow.
4.4. DISCONNECT BETWEEN THE STATED IMPORTANCE OF ICT AND ACTIONS IN RELATION TO ICT SKILLS
AgenciesstatedthatICTisfundamentaltotheirbusiness,yetthereisagenerallackofstrategic
planningforICTworkforcecapabilityatboththeagencyandwhole-of-governmentlevel.Only
fouragencieshaveICTworkforceplans,withafurthertwoplanningtoformaliseplans.
ThereisalsoalackofprofessionalcareerstructuresforICTprofessionalsintheAPS,makingit
moredifficultfortheGovernmenttorecruitandretainICTtalent.Trainingthatisprovidedis
basedonlyonspecificagencyneeds.
ExistingAGIMOinitiativessuchastheICTApprenticeshipandCadetshipprogramsareuseful,
butnotsufficienttoaddresstheskillsissue.
Chapter Four:Keyfindings ��
AgencyICTactivityisCanberra-centric,with79%ofICTstafflocatedintheACT.During
meetingswithagencies,threeagenciesnotedthattheyhadconsciouslymovedICTpositionsto
otherlocationsthroughoutAustraliainresponsetotheskillsshortage.Oneagencynotedthat
thisapproachhad,tosomeextent,bufferedthemfromtherisksinherentintheskillsshortage.
Together,thesefactorshavecontributedtotheICTskillsshortageintheAPS,withagencies
reportingtotalICTstaffshortagesintheorderof1,000(mainlyhighlyskilled).Thereis
alsoaheavyrelianceoncontractors,whorepresent23%ofthetotalcurrentICTworkforce.
Furthermore,thedecentralisedwayinwhichICTprojectsaremanagedmeansthatagencies
competeinthemarketforICTstaff,whichaffectscontractorrates.Onaverage,ICTcontractors
costaround$186,000perannum,whichis$94,000perannummorethantheaverageloaded
costforICTstaffinFMAActagencies.
ThelackoftrainingforSeniorResponsibleOfficialsintermsoftheirrolesandresponsibilitiesis
furtherevidenceofthedisconnectbetweenthestatedimportanceofICTandactionsinrelation
toICT.Moreover,organisationalleadersarenotaswellequippedastheyneedtobeonhowto
harnessthepotentialbenefitsofICT.
Finally,inrelationtosecurityclearancesthereisevidencethatbestpracticeintransferring
securityclearances(belowthe‘Secret’or‘HighlyProtected’level)betweenagenciesisnotwidely
adopted,leadingtounnecessarydelaysandcosts.Inaddition,itimpactsontheresponsiveness
andflexibilityofagencies.Forexample,agenciesneedtowaittoutiliseskillsandthiscanhave
subsequenteffectsonprojectdelivery.IalsonoticedthattheverificationofmyUKsecurity
clearancebyFinancehappenedalotfasterthanthereportedsixweeksofoneagencytoaccept
thesecurityclearancegrantedbyanotheragency.Itseemsstrangetomethataninternational
clearancewouldtakelesstimethananagency-to-agencyclearance.
Thesepointsraisesomequestionsaboutclearanceprocesses:
• Istheprocessconsistentandwell-designed?Thevariationinperformanceraisesdoubton
thatscore.
• Istheprocesssupportedbystandard,well-designed,interoperabletools?
• Couldsomeformofshared,centralprocess–drawingoncurrentfacilitiesandsystems
wheretheyexist–deliveramoresatisfactoryoutcomewithoutcompromisingagency
responsibilitiesandneeds?
Chapter Four:Keyfindings�0
4.5. THERE IS NO WHOLE-OF-GOVERNMENT STRATEGIC PLAN FOR DATA CENTRES. IN THE ABSENCE OF SUCH A PLAN, THE GOVERNMENT WILL BE FORCED INTO A SERIES OF AD HOC INVESTMENTS WHICH WILL, IN TOTAL, COST SIGNIFICANTLY MORE THAN A COORDINATED APPROACH
Fromtheagencybilateralmeetings,subsequentdatagatheringandindustryresponses,itisclear
thattheGovernmentisfacingsignificantissueswithrespecttoagencydatacentrearrangements.
Thekeyissuesare:
• Power.TheACThasonlyasinglepowergrid29whichposesariskgiventheeverincreasing
demandinpower.
• Capacity.EighteendatacentresofthelargestagenciesbasedintheACThaveidentifiedthat
theyhave10m2orlessavailablecapacityforgrowth.Withindustrybenchmarksindicating
thatgrowthindatacentrefloorspaceis5–10%ayear,thereisemergingpressurefor
additionaldatacentrecapacity.
• Inadequatefacilities.Lackofinvestmenthascontributedtoexistingfacilitiesnotmeeting
thedemandsofmoderntechnologyinthekeyareasoffloorloading,heating,ventilation
andair-conditioning,andavailabilityrequirements.Asignificantnumberofagencies
indicatedthattheywouldneeddatacentresoverthenext10–15yearswithhigherlevelsof
availabilitythantheircurrentfacilities.
Thelackofawhole-of-governmentdatacentrestrategyhasledtoagenciesindependently
establishingorsourcingdatacentrefacilitieswithoutconsideringtheeconomiesofscalethat
canbeachievedfromhavingawhole-of-governmentperspective.Afewagenciesarenow
activelyplanningtherequirementsforreplacementofsomeoftheirexistingfacilities.Basedon
high-levelmodellingwork,thereviewconsidersthatthereisaprimafaciecasethatawhole-of-
governmentapproachwillcostintheorderof$1billionlessovera15-yearperiodthanallowing
eachagencytohandlethereplacementoftheirexistingdatacentresonanautonomousbasis.
Additionalbenefitsoftakingawhole-of-governmentapproachtodatacentresare:
• Geographiclocationbenefitscanberealised.Coolerclimateslocationshavethepotentialto
reducecoolingcosts.
• Reductionincommunicationsinfrastructure.Fewerphysicaldatacentresrequireless
physicalcommunicationsinfrastructure.
• Disasterrecovery.Itwillbeeasiertoaccommodatedisasterrecoveryatawhole-of-
governmentlevelratherthaneachagencydealingwiththeissueautonomously.
29 There are two feeds from New South Wales to the single ACT electricity grid. One feed provides 85% of electricity to the ACT and the other 15%. The smaller 15% feed is only to the immediate Fyshwick area and is insufficient to support agency needs. Agencies with data centres in Canberra are therefore susceptible to the single ACT power feed.
Chapter Four:Keyfindings ��
4.6. THE GOVERNMENT ICT MARKETPLACE IS NEITHER EFFICIENT NOR EFFECTIVE
ThereviewfoundevidencetosupportthefindingthatthegovernmentICTmarketplaceis
neitherefficientnoreffective.Thisevidenceincluded:
• hightransactioncostsduetooverlyonerousprocurementprocessesandslow
decisionmaking
• barrierstoentry,particularlyforsmallandmediumenterprises
• toomuchuseofprescriptivestatementsofrequirement,whichlimitstherangeofsolutions
proposedbyvendors,includingcommercial/governmentoff-the-shelf(COTS/GOTS)solutions
• failuretoengagesufficientlywithindustrybeforethestartoftheformalcompetitiveprocess
• thepositiontakenbyagenciesonintellectualpropertyisseenasadeterrentbysuppliers
• theGovernment’sliabilitypolicyisnotconsistentlyimplemented,whichresultsinunlimited
liabilityorcapsonliabilitythataresetatamountsthataresohightheyareessentiallythe
sameasunlimitedliability
• theGovernmentisnotmakinguseofitscollectivebuyingpowerforcommodityproducts,
leadingtomultipletendersforthesameproductandagenciesbuyingtheseproductsat
differentprices
• theGovernment’s$80,000thresholdforopentender
• insufficientuseofselectivesourcingtoreducedependencyonlargeprimecontractorsand
increasethelikelihoodof‘best-in-class’solutions.
4.7. THERE IS A SIGNIFICANT DISCONNECT BETWEEN THE GOVERNMENT’S OVERALL SUSTAINABILITY AGENDA AND ITS ABILITY TO UNDERSTAND AND MANAGE ENERGY COSTS AND THE CARBON FOOTPRINT OF ITS ICT ESTATE
ThereisasignificantdisconnectbetweentheGovernment’soverallsustainabilityagendaand
itsabilitytounderstandandmanageitsenergycostsandthefootprintofitsICTestate.This
isevidencedbythelackofdataagencieswereabletoprovideinrelationtoenergyusageand
costs.Forexample,ofthe72agenciesthatwererequestedtoanswertheenergyquestions,35
providednodataonenergy,andafurthersevenprovidedinconsistentdata.Only23agencies
indicatedthattheyhadanenergyplan,while49agenciesadvisedthattheydidnothaveaplan
inplace.Ofthe23agenciesthatreportedhavinganenergyplaninplace,13indicatedthattheir
energyplanincludedanICTenergycomponent;however,onlysixofthoseagencieswereable
toprovidemeaningfuldatainresponsetothequestionsaskedinthesurvey.
��
Chapter Five:Recommendations ��
chaPteR �: Recommendations
5.1. RECOMMENDATION 1 – STRENGTHEN PAN-GOVERNMENT GOVERNANCE
5.1.1. Establish a Ministerial Committee on ICT
IrecommendtheestablishmentofaMinisterialCommitteeonICTasthevehicleforinvolving
Ministersintheleadershipandgovernanceofpan-governmentissuesrelatedtoICT.The
membershipofthecommitteeshouldincludeMinisterswhodrivechangeandhaveaninterest
inhowICTcancontributetotheachievementofkeygovernmentoutcomesandpolicies,
includingtheirdeliverability.
ThecommitteeshouldberesponsibleforICTpolicies,overallstrategicvision,whole-of-
governmentICT,andtheapprovalofopt-outs(seeRecommendation5.1.3)fromselectedwhole-
of-governmentactivities.ItwillbeinformedandsupportedbytheSecretaries’ICTGovernance
Board(seebelow),includingperiodicreportingontheprogressandimpactofimplementingthe
agreedrecommendationsarisingfromthisreview.
IalsoproposethattheMinisterialCommitteemeetaroundthreetimesayear,withgreater
frequencyofmeetingsinthefirstyear.
5.1.2. Create a Secretaries’ ICT Governance Board and provide it with a strong mandate from the Government
Todriveforwardtheministerialagendaonwhole-of-governmentICT,Irecommendthecreation
ofaSecretaries’ICTGovernanceBoard(SIGB),whichshouldbegivenastrongmandatefromthe
Government.TheSIGBwillreplacetheexistingSecretaries’CommitteeonICT(SCICT).
TheSIGBwillbeacommitteeofSecretariesrepresentativeofcentralbodies,portfolio
departments,deliveryagenciesandafewtopexecutivesfromprivatesectorcompanieswhich
aresuccessfulusersofICT.
ItwillbesupportedbytheChiefInformationOfficerCommittee(CIOC),BusinessProcess
TransformationCommittee(BPTC),andtheChiefInformationOfficerForum(CIOF),with
strongertermsofreference,andasecretariatfunctiontoensurethatonlymattersandpapers
appropriatetotheSIGBmembershipgoforwardforconsideration.
Chapter Five:Recommendations��
TheSIGBshouldbefocusedonbusiness,nottechnologyortechnicalissues,andbeempowered
tosetwhole-of-governmentstrategiestosupportthepoliciesandvisiondeterminedby
Ministers.Itsproposedtermsofreferenceareto:
• beresponsibleforoverseeingprogressandtheimpactofthechangeprogramarisingfrom
theGovernment’sresponsetothisreview
• reviewonanannualbasiskeytrendsintheGovernment’sICTexpenditureandalertthe
MinisterialCommitteetoanysignificantchanges
• beresponsibleforthestrategicportfoliomanagementofICTinvestmentsacross
FMAActagencies
• beresponsiblefordeterminingpriorityareasforstandardisation,consolidationand
commonapproaches
• beresponsiblefordeterminingtheGovernment’sresponsetoemergingICTtrendsandissues
• considerandapprovetheAustralianGovernmentInformationManagementOffice’s
(AGIMO)annualworkplan.
AppendixHsetsoutcandidatesforconsiderationforwhole-of-governmentapproaches,subject
toopt-out,overthefirst2yearsoftheSIGB’sexistence.
Itisessentialthatbeforeapprovinganyproposalforacommonapproach,thattheSIGBseeks
assurancefromtheCIOC,BPTCandCIOFasappropriate,thattheproposalisfitforpurposeand
thatimplementationaspects(includingfunding)havebeenfullyconsidered.
AppendixIsetsoutproposedcriteriaagainstwhichthebenefitsofpotentialwhole-of-
governmentapproachesandarrangementssubjecttoopt-outshouldbeassessed.
IalsoproposethattheSIGBmeetaroundfourtosixtimesayear,withgreaterfrequencyof
meetingsinthefirstyear.TheyshouldalsoreportperiodicallytotheMinisterialCommittee.
5.1.3. Allow agencies to obtain opt-outs from agreed whole-of-government activities, based on genuine business need. Opt-outs to be approved by the Ministerial Committee, informed by the SIGB
Irecommendthatthecurrentsystemofself-approvedopt-inbyagenciestowhole-of-
governmentICTarrangementsischangedtoanewsystemwherebyagencieswillneedtoseek
approvalfromtheMinisterialCommitteetoopt-outfromagreedarrangements.
Approvaloftheopt-outswillbeinformedbytheSIGB,particularlyduringthebudgetprocess.
AdvicetotheMinisterialCommitteeduringthisprocessoncompliancewithagreedwhole-of-
governmentarrangementsandrequestsforopt-outsshouldreplacetherolefortheSCICTin
thetwo-passprocesspreviouslyagreedbytheGovernment.
Chapter Five:Recommendations ��
Toseekanopt-out,anagencywillneedtoprepareashortbusinesscasebasedonagenuine
businessneed,irrespectiveofhowthedriverfortheopt-outisfunded.
Thecriteriafortheassessmentofopt-outswillneedtobedevelopedandagreedbytheSIGB.
ProvidedtheassurancemechanismIhaverecommendedaboveinRecommendation5.1.2for
theSIGBworkseffectively,Ienvisagethenumberofpotentialopt-outswillbelow.
BasedontheadvicethatIhavereceivedfromFinance,Ibelievethattheproposedchangesto
agencyoperationcanbeimplementedwithintheprovisionsofthecurrentFMAAct,provided
thechangessetoutaboveareapprovedasgovernmentpolicy.
5.1.4. Redefine AGIMO’s role
IntheproposednewmodeloftheGovernment’suseofICT,theprincipalroleofthecentralunit
(AGIMO)istoactasacatalystforchangeandanagenttoassisttheformulationandrealisation
ofobjectives,policiesandstrategiesagreedbytheMinisterialCommitteeandtheSIGB.
ItisthereforeessentialthatitsoverallremitisapprovedbytheSIGBandMinisters,itsworkplan
isreviewedandapprovedbytheSIGBannually,andfundingbeprovidedsothattheagreed
workplancanbeimplemented.
AppendixJsetsouttheproposedroleforAGIMO.
Oncethefinalremitofthecentralunithasbeenagreed,itmaybeappropriatetogive
considerationastowhetheritsnameshouldbechangedfromAGIMOtoreflectmore
accuratelyitsnewrole.
Inordertooptimisetheeffectivenessoftheunitinthenewmodelofoperation,Irecommend
thatitsresourcingmodelincludeasignificantnumberofagencysecondeesonarotational
basis,aswellassomerecruitmentofprivatesectorexpertise.
5.1.5. Establish a program board
IrecommendasmallboardbeestablishedwitharemitfromtheSIGBtomanagetheoverall
implementationoftheagreedrecommendationsarisingfromthisreview.Theboardshould
includetheGeneralManagerofAGIMO,theGeneralManagerofFinance’sBudgetGroupanda
DeputySecretaryfromPM&C.TheboardshouldreportprogresstotheMinisterialCommittee,
SIGBandtheSecretaryofPM&C.
Chapter Five:Recommendations��
5.2. RECOMMENDATION 2 – STRENGTHEN AGENCY GOVERNANCE
5.2.1. Improve agency capability
Asafirststep,Irecommendimplementingacommonmethodologyforassessingagency
capabilitybasedonself-assessmentandperiodicindependentaudit.Thedevelopmentof
thismethodologyshouldutiliseandintegrateexisting‘off-the-shelf’methodologiessuchas
COBIT®,CMMI®,ITIL®,AS8015-2005CorporateGovernanceofICT,P3M3™,theUKGovernment
capabilityreviewapproach,PRINCE2™,PMBOK®,andtheUKGovernmentOfficeofGovernment
Commerce’sManagingSuccessfulProgrammes.Itshouldencompasstheentirelifecycle
managementofICT,includingbusinessdomainactivitiessuchasrequirementsdefinitionand
benefitsrealisation.Themodelwillalsoneedtotakeintoaccountattributessuchastheability
totransferandmanageICTworkremotely,andtheabilitytoworksuccessfullywithindustryas
aclientbothprecontractawardandduringthelifeofacontract.
Agencyexecutiveswillberequiredtoproposeatargetlevelofcapabilitybasedontheir
agency’sandtheGovernment’sstrategicpriorities,andforthistobeindependentlyvalidated,
particularlybeforeundertakingmajorICTprojectsthatareeitherinternallyfundedorreceiving
newpolicyproposal(NPP)funding.Thetargetlevelofcapabilityneedstobekeptunderreview
inthelightofchangingagencyandgovernmentprioritiesandobjectives.
Agencieswillalsoberequiredtodevelopacapabilityimprovementplanandtocommitto
andagreeactionstoaddressanycapabilitygaps.Furthermore,agenciesshouldincorporate
capabilityimprovement,whererequired,intotheirriskmanagementframework.
Ienvisagethata‘lite’versionofthismethodologywillalsoneedtobedevelopedfor
smalleragencies.
5.2.2. Strengthen the link between policy formulation and implementation
FollowingonfromRecommendation5.2.1,Irecommendthatagencycapabilitybeincludedas
oneofthefactorsconsideredinthetwo-passinvestmentapprovalprocess(forbothNPPand
internallyfundedagencyprojects).
Thetwo-passinvestmentapprovalprocessshouldbeextendedtoincludeadditionalstagesfor
projectsbeingundertakenbyanagencywhichneedstoenhanceitscapabilitytoahigherlevel
inordertoundertaketheproject.Ateachstage,theonusofproofmustbewiththeagencyto
demonstratethatboththeprojectanditscapabilityimprovementplanareontrack.
Additionally,induecourse,largeragenciesshoulddemonstrateintheirNPPs,andinternally
fundedprojectsrequiredtogothroughthetwo-passprocess,theircapabilitytolocate
significantportionsoftheworkoutsideCanberraandtheirintentiontodoso.
Chapter Five:Recommendations ��
IalsorecommendstrengtheninggovernanceregardingtheadoptionormodificationofCOTS/
GOTS.AGIMO,inconsultationwiththeBPTC,CIOCandCIOFshouldalsoadvisetheSIGBofthe
selectedareasandapplications(forexample,backofficesystems)whereproposalstoacquire
orupgradebespokeorcustomisedsolutionswillrequireapprovalbytheMinisterialCommittee,
utilisingthesameprocessasforopt-outs.InadditiontorelevantnewNPPandinternallyfunded
projects,thisshouldalsoapplytoallexistingapprovedNPPswhichhavenotyetconcluded
procurement.Thisisessentialasthepotentialliabilityforeachagencyandimpactoffuture
machineryofgovernmentchangesdoesnotrestwithanindividualagency.Thisissueneedsto
beopenandtransparentacrossgovernment.
Allotherproposedusesofbespokeorcustomisedsoftwareshouldbedecidedatagency
ExecutiveBoardleveltohelpensurethatadditionalcostsarejustifiedbytheincremental
benefitsoveraCOTS/GOTSapproach.Thisrecommendationreflectsthebestpracticealready
usedinsomeagencies.
IrecommendimplementingGate0oftheGatewayReviewprocessinordertobettertestpolicy
andimplementationoptionsofmajorprojectsatanearlystagebeforepoliciesarefinalised.
TheGatewayReviewoutcomeresultsshouldalsobeaninputintheNPPprocesstoimprovethe
informationavailabletoMinisterswhenconsideringNPPs.
FinanceshouldbuildonitsexistingtrainingandpolicyguidanceforSeniorResponsibleOfficials
tohelpthemdischargetheirroleandresponsibilities.
5.2.3. Identify a custodian of best practice in benefits realisation
IrecommendthatthePM&CCabinetImplementationUnit,inconsultationwithAGIMO,identifya
leadagencytobethecustodianofbestpracticeinbenefitsrealisationpractice,withresponsibilityto
promotebestpracticeandassistagenciestoimprovetheirbenefitsrealisationcapability.
TheSIGBcouldinvitetheidentifiedagencytoundertakethisroleandreviewonanannualbasis
whetheritshouldcontinuetobetheGovernment’sCentreofExcellence.
5.2.4. The Department of Defence and the Australian Intelligence Community to demonstrate to their relevant committees the measures taken to implement the approved recommendations arising from this review
Chapter Five:Recommendations��
5.3. RECOMMENDATION 3 – TIGHTEN THE MANAGEMENT OF ICT BUSINESS AS USUAL FUNDING
5.3.1. Target to move from 77:23% split between BAU and creation of new capability in 2007–08 to 70:30% in 2011–12
Asinitialstepstowardsthisgoal,Irecommendreducingthebusinessasusual(BAU)ICT
budgetsofthe28largeagencies30by15%onaveragefrom2007–08actuals(foralistof
agenciesrefertoAppendixF).Theintroductionofthisreductionshouldbephased,witha
5%averagereductioninthefirstyear,thebalanceinthesecondyearandtheaggregate
15%reductionsustainedinsubsequentyears.
Tohelptheseagenciesachieveorexceedthetargetreductionswithoutimpairingservice
deliverytocitizensandbusiness,IrecommendcreatingICTReviewTeamswhowillworkclosely
withagenciestovalidatetheagency-specifictargetforeachoftheselargeagencies.Thework
oftheICTReviewTeamswillinclude,butnotbelimitedto,identifyingthedriversofagencyBAU
costs,reviewingthelevelofserverutilisation,andtheefficiencyofdatacentreinfrastructure,
scopeforreducingserverproliferationandthesubsequentimpactondatacentres,andthe
planstoreducecontractors(seeRecommendation5.4.2)byusingcross-agencyandexternal
benchmarkcomparisonstoidentifyscopeforefficiencyimprovements.Iestimatethatseven
ICTReviewTeamswillberequiredtoconductthework,drawingonresourcesfromFinance’s
BudgetGroup,AGIMO,agencysecondeesandexternalexperts.
TopreparefortheworkoftheICTReviewTeams,Financewillneedtoleadasmallteam,
includingexternalexpertiseonICTefficiencymetricsandagencysecondees,onthe
developmentofacommonICTChartofAccounts,anddevelopandagreeasetofcommon
efficiencymetricstofacilitateon-goingcostreductionandbenchmarkingsothatthe
teamsandagenciescanworktoacommonmethodology.Thisactivityneedstocommence
immediatelysothattheICTReviewTeamscanbemobilisedinNovember2008toimpactthe
2009–10Budgetprocess.
Inaddition,IrecommendtargetingagencieswithtotalannualICTspendsbetween$2million
and$20milliontoachievea7.5%reductiononaverageoftheirBAUfrom2007–08actuals(for
alistofagenciesrefertoAppendixG).Theintroductionofthisreductionshouldalsobephased,
witha2.5%averagereductioninthefirstyear,thebalanceinthesecondyearandtheaggregate
7.5%reductionsustainedinsubsequentyears.
Boththe15%and7.5%targetsaremacro-leveltargets.Individualagencytargetswillneed
toreflecttheircurrentratiosofBAUtocreationofnewcapabilityspend.Thosewithratiosin
excessoftheaverageshouldhavetargetreductionsinexcessofthe15%or7.5%asappropriate.
30 Defence is excluded because it is already undertaking a program to find significant savings which can be reinvested in its front line capability.
Chapter Five:Recommendations ��
The15%and7.5%reductionsintotalshouldsavetheGovernmentaround$140millioninthefirstyearandinexcessof$400millioninthesecondandsubsequentyears.Ialsorecommendthat50%ofthesavingsgeneratedbytheserecommendationsbetransferredtoacentralfundforreinvestmentinprojectstoimproveefficiencyandeffectivenessofICTBAUactivities,suchasreplacementoflegacysoftwareandhardwarewithhighsupportandmaintenancecosts.
Myrationaleforrecommendingtargetsatthislevelisbasedonthefollowing:
(a)ItisclearfromtheevidencethatBAUICTspendisnotingeneralsubjecttorobustscrutiny.
(b)Thevariationsinthemetricsrelatedtocostperdesktop,financialandHRmanagementsystemsareverywide,reflectthelackofscrutinyandindicatesubstantialscopeforefficiencygains.
(c)ItisreasonabletoassumethatasothercommonmetricsareappliedtoBAUspend,theywillalsodemonstrateverywidevariationsandsimilarsubstantialscopeforefficiencygains.
(d)Inmyexperience,whendetailedscrutinyisappliedtopreviouslyunder-scrutinisedareasofspend,savingsoftheorderIhaveproposedareachievableifreinforcedbyastrongmanagementfocusandbudgetaryconstraints.
AgenciesshouldalsoberequiredtodemonstrateinallfutureNPPsandinternallyfundedprojectsrequiringapprovalbythetwo-passinvestmentprocesshowtheyintendtoexploitexistingdatacentrecapacity,andexistinghardwareandsoftwareassets.
5.3.2. Develop common metrics and conduct benchmarking
ToimprovethepracticeandrigourinmonitoringtheeffectivenessofICTinvestments,IrecommenddevelopingasetofcommoneffectivenessmetricstofacilitatebetteruseofICTandregularbenchmarking.ThesemetricsaretobeagreedbytheBPTC.AnnualagencybenchmarkinganalysisbasedonthecommonefficiencyandeffectivenessmetricswillalsobeundertakenbyAGIMO,withanaggregatereportprovidedtotheSIGBandadetailedreportprovidedtoeachagencytoinformongoingimprovementsinefficiencyandeffectiveness.
5.3.3. Consider shared services carefully
Thereviewreceivedanumberofinputsfromindustryindicatingthesignificantbenefittobeobtainedfromsharedservices.Inrespectofbackofficeapplications,however,IalsoconsideredthemixedexperiencesreportedtousbytheCIOsofanumberofstatesandterritories,togetherwiththerecentexperienceoftheUKGovernmentasdescribedintheMay2008UKNationalAuditOfficereportShared Services in the Department for Transport and its Agencies.Inlightofthis,Ihaveconcludedthatmovestowardsbackofficesharedservicesbetweenagenciesshouldonlybeundertakenonaverycarefullyselectedandcontrolledbasis.Inthemeantime,asafirststeptowardsawideradoptionofthesearrangements,Iconsideritessentialthatallagenciesquantifyboththebackofficeservicelevelsandtheassociatedcostsoftheircurrentprovisionarrangements,andthattheyusethisasthebasisfordeterminingwhatimprovementscanberealisedthroughtheirownefforts,suchasprocesssimplificationandareductioninmanualinterventions.Thiswillhelpcreateastrongerfoundationonwhichtoassesstheadditionalbenefitsthatcanbeobtainedfrommovingtoasharedserviceinthefuture.
Chapter Five:Recommendations�0
5.4. RECOMMENDATION 4 – ENHANCE THE MANAGEMENT OF THE APS ICT SKILLS BASE
5.4.1. Recognise that there is a national and global competition for talent and the APS needs to recruit, develop and retain key ICT skills
ToaddresstheissuesaroundICTskillsshortages,thetalentattractionandretentionofICTskills
withintheAPSneedstobeimproved.Irecommendtwokeymeasures.
Firstly,thereneedstobethecreationofawhole-of-governmentICTcareerstructure,developed
byAGIMOinconsultationwiththeAustralianPublicServiceCommission(APSC)andPM&C.
ThiswillincludetraininganddevelopmentprogramsforICTprofessionalsinkeyskillsareas
(forexample,projectmanagementandsystemsarchitecture)andshouldutiliseexisting
taxpayerfundedinitiativeswhereverpossible(forexample,theDefenceMaterielOrganisation
projectmanagementtraining).
Secondly,awhole-of-governmentstrategicICTworkforceplanneedstobedevelopedand
maintained.TheplanwillbedevelopedandsupportedbytheAPSCandAGIMO,andwill
leveragetheworkdonebyotheragencies,suchastheAustralianTaxationOffice(ATO),ona
workforceplanningtool.AGIMOshouldconstructtheplanannuallybasedoninputsfrom
agenciesandrecommendtotheSIGBoptionsfordealingwithidentifiedskillsissues,including
recruitment,training,anddevelopmentinareasofskillsshortages.
Withthecombinationofacommoncareerstructureandaworkforceplan,itshouldbecome
mucheasiertoplantosmoothpeaksandtroughsofdemandforICTskillsinindividualagencies.
5.4.2. Reduce the total number of ICT contractors across the APS by 50% over the next 2 years and increase the number of APS ICT staff
Toreducetheover-relianceoftheGovernmentonICTcontractors,Irecommendreducingthetotal
numberofICTcontractorsacrosstheAPSby50%(fromthe2007–08actuals)overa2-yearperiod,
whilstsimultaneouslyincreasingthenumberofAPSICTstaff.ThisshouldsavetheGovernment
anestimated$100million(acrossbothBAUandproject-relatedwork).Thisisbasedonthe
replacementofexistingICTcontractorswithAPSstaffacrossarangeofAPSclassifications.
AscontractorsareusedonbothBAUandnewproject-relatedwork,thesavingsfromapplyingthis
recommendationtoBAUwillcontributetosavingsunderRecommendation5.3.1.Thebalanceof
thesavingswillbeincrementaltothesavingsarisingfromtheBAUreductiontargets.
Individualagencytargetswillneedtotakeintoaccounttheexistinglevelofuseofcontractors.
Asaguideline,agencieswherecontractorsformlessthan10%oftheirICTworkforceshouldnot
betargetedtoachieveafurtherreduction;agencieswithacontractorworkforceinexcessof
23%shouldbetargetedtoachievemorethana50%reduction.
Chapter Five:Recommendations ��
Myreasonsforrecommendingatargetofthismagnitudeareasfollows:
(a)ThecombinationoftheCanberra-centricityoftheICTworkforceandtheoverallpercentage
ofcontractorsindicatesthatcontrolsandscrutinyoftheuseofcontractorsaregenerallytoo
weak,withtheexceptionofagenciesthathavelow(10%orless)contractoruse.
(b)Thisisexacerbatedbythelackofawhole-of-governmentprofessionalcareerstructurefor
ICTstaffandofworkforceplansthatenablepeaksandtroughsofdemandforICTskills
betweenagenciestobesmoothed.
(c)Inmyexperience,theintroductionoftightcontrolsovertheuseofcontractorsandbetter
recruitment,developmentandtrainingofemployeesmakessavingsofthemagnitudeIhave
proposedentirelyfeasibleifreinforcedbyastrongmanagementfocusand
budgetaryconstraints.
Iproposeatthemacrolevelthata20%reductionisachievedwithinthenext12monthsand
thebalanceinthesubsequent12months.
Thisrecommendationwillalsohelpfocusattentionatbothanagencyandwhole-of-
governmentlevelonthemanagementactionsrequiredtoattract,developandretainthe
appropriateskillswithintheAPS.
5.4.3. Larger agencies to demonstrate how they will develop/increase their capability to manage ICT work remote from Canberra and develop 5–10 year plans to reduce the Canberra-centricity of existing ICT activities
ToreducetheCanberra-centricityofexistingagencyICTactivities,Irecommendthatlarger
agenciesinduecourseberequiredtodemonstrateinNPPsandinternallyfundedprojects
requiringapprovalbythetwo-passinvestmentprocess,theircapabilitytolocatesignificant
portionsoftheworkoutsideCanberra,andtheintentiontodoso.
5.4.4. Examine whether current security vetting processes and tools lead to adverse consequences
Whiletheparticularsofthesecurityvettingprocessarebeyondthescopeofthisreview,there
isacaseforawhole-of-governmentprojecttocriticallyexaminequestionsaroundsecurity
vettingprocessesandtools,particularlyforhigh-volume,lower-levelclassifications,becauseof
theadverseconsequencesthecurrentclearanceprocessesarehavingoncostsanddeliveryof
ICTprojects.Aspartofthisprocess,anybestpracticesinthetransferofsecurityclearancesfor
ICTstaffacrossagenciesshouldbeidentifiedandpromulgated.Iamthereforerecommending
thattheSIGBestablishesaworkinggroupfromtherelevantpolicyagenciesandacrosssection
ofdeliveryagenciestoproduceproposalsforimprovingthecurrentsituation.
Chapter Five:Recommendations��
5.4.5. Equip organisational leaders to harness the potential benefits of ICT
TobetterequiporganisationalleadersonhowtoharnessthepotentialbenefitsofICTto
improvetheeffectivenessandefficiencyoftheiragency,IrecommendthattheAPSC,in
conjunctionwithAGIMO,arrangeappropriateeventsfororganisationalleaders.Thiscould
include,forexample,invitingguestspeakersfromtheprivatesectorandothergovernment
agenciesthathavesuccessfullyledmajorICT-enabledtransformationsintheirorganisation.
5.4.6. Establish a whole-of-government tele-working policy for ICT staff, building on existing AGIMO guidance
ToassisttheAPSinrecruitingandretainingICTskilledprofessionalsinanenvironmentwhere
‘green’workpoliciesplayanincreasinglyimportantroleinimprovingtheattractivenessofan
employertocurrentandfutureemployees,IrecommendthattheGovernmentestablisha
whole-of-governmentpolicyontele-working,buildingonexistingAGIMOguidance.
5.4.7. Sponsor annual awards to recognise outstanding professionalism in key ICT disciplines
TohelpraiseandrecognisetheprofessionalismofICT,theGovernmentshouldsponsor
annualawardstorecogniseoutstandingprofessionalisminkeyICTdisciplinessuchasproject
management,systemsarchitectureandsoftwaredevelopment.
5.5. RECOMMENDATION 5 – DATA CENTRES
5.5.1. Develop a whole-of-government approach for future data centre requirements over the next 10–15 years
Toaddressthefindingthatthereisnowhole-ofgovernmentstrategicplanfordatacentres,
Irecommenddevelopingawhole-of-governmentapproachfordatacentrerequirementsover
thenext10–15yearsthatwilltakeintodetailedaccountfactorsincluding,butnotlimitedto,
thefollowing:
• trendsincooling,weight,storagerequirementsandpower
• growthinspacerequirements
• availabilityrequirements31
• economicsofdifferentsizemoderndatacentres
• disasterrecovery
• geographiclocation.
31 The Uptime Institute’s Tier Classification System may be a helpful way for agencies to consider their future requirements over this planning period.
Chapter Five:Recommendations ��
Inmakingthisrecommendation,Ishouldemphasisethatthisrelatesonlytothepotential
consolidationofthephysicaldatacentreinfrastructure,forexample,thebuildings,heating,
ventilation,air-conditioningandpowersupplyarrangements.Theprovenpracticeinexisting
sharedfacilitiesofkeepingagencies’ICTequipmentanddatabasesinseparatelycontrolledand
managedareasshouldbereplicatedinanyadditionalnewshareddatacentres.
ThisworkshouldbeledbyAGIMOwithagencysecondees,Finance’sBudgetGroup
representatives,andexternalspecialistexpertise.Theresultingapproachshouldthenbeputto
theSIGBforconsideration.
Pendingtheconclusionofthiswork,thereshouldbeafreezeonmajorupgradesto,and
replacementof,existingdatacentres.Exceptionstothisfreezeshouldbeapprovedbythe
SIGBwhowillneedtobesatisfiedthattheproposedprojectdoesnotcompromiseawhole-of-
governmentapproach.
5.6. RECOMMENDATION 6 – IMPROVE THE EFFICIENCY AND EFFECTIVENESS OF THE ICT MARKETPLACE
5.6.1. Make better use of the Government’s collective buying power
Asaninitialsteptowardsthisgoal,IrecommendoptimisingthenumberofICTpanel
arrangementsestablishedbyagenciesacrossgovernment.Thisincludestheintroductionof
whole-of-governmentpanelarrangementsforICTcommodity-basedprocurementswhere
trueeconomiesofscaleareachievable.Panelsshouldalsobewhole-of-governmentwhere
appropriate,butmaybeportfolio-basedwheretheywilldeliversuperiorvalue.Largeragencies
canusethesepanels,butiftheygetbetterpricesthroughotherprocurementchannels,then
thatpriceshouldbeleveragedasthewhole-of-governmentprice.
Next,IrecommendimprovingprocurementarrangementsforICTcommodityproductsand
services,andvolumesourcingarrangementsforkeyitemsofsoftware.Thisincludestheuseof
aggregatedarrangementsande-auctions,whereappropriate.Thesearrangementsshouldbe
subjecttoMinisterialapproval,includingagencyopt-out,inlinewiththeGovernment’sexisting
approvalarrangementsforcoordinatedprocurement.
Third,IrecommendimplementingthestrategicmanagementofkeyICTsuppliers.The
definitionof‘keysuppliers’inthiscontextdoesnotjustrelatetothedollarvalueofbusiness
butcanalsorelatetothecriticalityofwhatissupplied.Strategicmanagementofkeysuppliers
encompassesgreaterintelligencegatheringonindustryhealthtoinformproactivegovernment
stancesfordealingwithincreasesinthedominanceoflargesuppliers,bankruptcies,mergers
andacquisitions,etc.Toassistinthis,theprocessesandtoolsdevelopedbytheUKGovernment
inthisareamayhelptokick-startthisactivity.
Chapter Five:Recommendations��
5.6.2. Work with industry to develop client and supplier codes of conduct with agreed escalations for non-compliance
TohelpimprovetheoperationofthegovernmentICTmarketplace,Irecommenddeveloping
clientandsuppliercodesofconductwithagreedescalationsfornon-compliance.
Asastartingpoint,theclientcodeshould:
• Include,interalia,adherencetoGovernmentpoliciesonIPandliability,rapidtransferability
ofsecurityclearances,sensitivitytothecostsincurredbyindustryinbiddingforcontracts,
avoidanceofprescriptiverequirements,andwillingnesstoengagewithindustryonalevel
playingfieldbeforecommencementoftheformalprocurementprocessformajorprojects.
• Forsignificantnon-commodityICTprocurements,stronglyencouragethatselective
sourcingoptionsshouldalwaysbeconsideredforthecontractingofseveralsmallerwork
packagesinsteadofasingle,largeworkpackagetoincreasetherangeofpotentialsuppliers,
reducedependenceonverylargeprimesuppliers,andincreasethelikelihoodofobtaining
bestinclassofferings.
• Encouragequalityengagementwithindustryonsignificantnon-commodityprocurements
priortothecommencementoftheformalprocurementprocess.Forexample,agencies
couldhostindustryforumsonforwardintentions.
• RequiretheuseofappropriatelytrainedandexperiencedAPSICTprocurementspecialists.
IndustryshouldconsideriftheSupplierCodeofConductdevelopedbyIntellectinresponseto
concernsofUKGovernmentclients,representsausefulstartingpointforanAustraliancode.
IbelievetherewouldbemeritifGovernmentandindustryconsultedwitheachotherduringthe
developmentoftheirrespectivecodes.
5.6.3. Determine if the Government’s current policy on IP is a significant barrier to entry and a cost driver
GiventhatthepositiontakenbyagenciesonIPisseenasadeterrentbyICTsuppliers,I
recommendthattheGovernmentdetermineifitscurrentpolicy,oritsimplementationby
agencies,onIPisasignificantbarriertoentryandacostdriver.Thisactivityshouldbeledby
theAttorney-General’sDepartmentwithinvolvementbyotherinterestedpolicydepartments
(forexample,theDepartmentofInnovation,Industry,ScienceandResearchwithitsinterest
inSMEs)andseekinputfromindustryandacross-sectionofagencies.Conclusionsand
recommendationsshouldthenbeputtotheMinisterialCommitteeforapprovalafter
considerationbytheSIGB.
Chapter Five:Recommendations ��
5.6.4. Integrate the Government’s ICT and SME policies so that they are mutually reinforcing
ToaddresstheissuesandconcernshighlightedbySMEs,theGovernmentshouldensurethat
itsICTandSMEpoliciesaremutuallyreinforcing.IrecommendthattheMinisterialCommittee
commissionastudyinvolvingtherelevantpolicyagencies,across-sectionofuseragenciesand
representativeindustrybodiestoidentifyoptionsformutualreinforcementofthesetwopolicies.
5.6.5. Consider if the Australian Government is getting a net benefit from the $80,000 open tender threshold under the FTA
The$80,000thresholdis:
• significantlylowerthanthethresholdinCommonwealth Authorities and Companies
Act 1997agenciesandotherjurisdictions,forexample,Australianstateandterritory
governments,andtheEuropeanUnion
• seenasasignificantburdenbyagenciesandmanysuppliers.
Inlightofthis,IrecommendthatareviewisledbytheDepartmentofForeignAffairsandTrade
toestablishwhetherAustraliaisgainingnetbenefitfromthecombinationofthedomesticand
exportaspectsoftheAustralia–USFreeTradeAgreementandreporttheoutcometoMinisters.
5.7. RECOMMENDATION 7 – SUSTAINABILITY OF ICT
5.7.1. Develop a whole-of-government ICT sustainability plan (in conjunction with Department of the Environment, Water, Heritage and the Arts (DEWHA)) to manage the carbon footprint of the Government’s ICT activities
TobetteraligntheGovernment’soverallsustainabilityagendaanditsabilitytounderstand
itsenergycostsandthefootprintofitsICTestate,IrecommendthedevelopmentofanICT
sustainabilityplan.
TheICTsustainabilityplanshould:
• identifywhichoftheavailablestandards(forexample,EPEAT™)shouldbeadoptedas
mandatoryforrelevantICTacquisitions(therequirementtopurchasegreenICTequipment
shouldbeincorporatedintotheclientcodeofconductasdetailedunderRecommendation5.6.2)
• includeawhole-of-governmentICTenergytarget,withagenciestoreporttheirprogress
towardsthetarget
• takeintoaccountpotentialimplicationsofacarbonpollutionreductionscheme.
Chapter Five:Recommendations��
Ialsorecommendthatlargeagencies(withICTspendsinexcessof$20million)developan
ICTenergyefficiencyplanthatcanbeeitherpartofawideragencyenergyefficiencyplan,or
freestanding.Asapriority,agenciesshouldmeasuretheirdatacentreenergyefficiency(which
mayrequiretheinstallationofelectricitymetersinsomeinstances).Agenciesshouldalso
includeintheirplanatargetenergyusage,includingthepowerusageeffectiveness32oftheir
datacentres.
LargeragencieswillneedtoundertakeaperiodicindependentICTenergyassessment.Subject
toagreementbytheDepartmentoftheEnvironment,Water,HeritageandtheArts(DEWHA),
agencyplanswillalsobeindependentlyassessedbyDEWHA,withresultsoftheassessment
reportedtotheMinistersforFinanceandDeregulation,andResourcesandEnergy.Reporting
ofprogressagainsttheplan,shouldbeinawaythatisconsistentwithotherreporting
requirementssuchastheNationalGreenhouseandEnergyReportingFramework.
WhenprocuringnewICTproductsandservices,itisimportantthatagenciesconsidertheirimpact
ontheenvironment.AGIMO,inconjunctionwithDEWHA,shoulddevelopagreenICTprocurement
kittosupportagenciesregardingenvironmentalissuesinrelationtoICTproductsandservices.This
shouldincluderawmaterialacquisition,manufacture,distribution,useanddisposal.
5.7.2. Identify green ICT quick wins
Intheinterim,AGIMOshouldidentifyapossiblelistofquickwinsinthisarea,suchassoftware
controlledautomaticturn-offofPCs,basedonthebestpracticesalreadyadoptedbysome
agenciesandintheprivatesector.
32 Power usage effectiveness (PUE) is a metric used to determine the energy efficiency of a data centre. PUE is determined by dividing the amount of power entering a data centre by the power used to run the computer infrastructure within it. PUE is therefore expressed as a ratio, with overall efficiency improving as the quotient decreases toward 1. PUE was created by members of the Green Grid, an industry group focused on data centre energy efficiency: http://www.thegreengrid.org/gg_content/Green_Grid_Metrics_WP.pdf
Chapter Six:Implementation ��
chaPteR �: imPlementationAcceptanceofmyrecommendationswillleadtoamajorprogramofadministrativereformand
culturalchange.Foranysuchprograminthepublicorprivatesector,successfulimplementation
isnotaforegoneconclusion.Basedonmyexperienceofcreatingsustainablechangeinthe
UKpublicsector,therearetwocriticalrequirementswhichwilldeterminethesuccessofthe
proposedprogram:first,sustainedleadershipanddriveatMinisterialandtopofficiallevels;
second,ensuringtheenablersofchangeareproperlyresourcednotonlyinfundingtermsbut
alsoskillsoftherightcalibre.
OncetheMinisterialCommitteehasbeenestablishedandastrongmandategiventothe
Secretaries’ICTGovernanceBoard(SIGB),itwillbeimportantthattheearlydecisionsofthese
twobodiessendoutclearsignalsaboutthepaceanddirectionofchange,andthatthisisthen
reinforcedthroughtheirsubsequentdecisions.
However,itwillalsobeessentialtoensurethatwhole-of-governmentICTapproachesand
arrangementsare‘fitforpurpose’beforetheyareapprovedandimplemented.Thiswillrequire
agenciestobefullyinvolvedinthedevelopmentofwhole-of-governmentICTinitiativesand
forappropriateconsultationtotakeplacebeforeapproval.Whereagenciesareaskedtotakea
leadroleintheacquisition,developmentoroperationofwhole-of-governmentICTapplications,
infrastructureorsystems,thegovernancearrangementswillneedtoensurethereissufficient
fundingandthattherequirementsarespecifiedtomeetthebusinessneedsofallpotentialusers.
ShouldtheGovernmentacceptmyrecommendations,Irecommendthatanindependent
reviewofprogressbeundertakeninthefirstquarterof2010.
Theremainderofthischaptersetsoutaproposedimplementationplanandschedulebasedon
theassumptionthattheGovernmentapprovesalltherecommendationsinNovember2008.
Chapter Six:Implementation��
CABINET-IN-CONFIDENCE
71 CABINET-IN-CONFIDENCE
Recommendation 1 – Strengthen pan-government governance
Activity Responsibility Due date Benefits 5.1.1 Establish a Ministerial
Committee on ICT PM&C (supported by Finance)
Nov 2008 Clearer alignment of ICT with government policies and outcomes
5.1.2 Create a Secretaries' ICT Governance Board (SIGB)
AGIMO Nov 2008 Whole-of-government ICT governance that defines the ICT strategies in agreed areas
5.1.3 Develop whole-of-government opt-out criteria from agreed activities, for approval by the Ministerial Committee
AGIMO Mar 2009 Opt-out decisions taken from a whole-of-government perspective. Full benefits from whole-of-government activities are derived
5.1.4 Redefine AGIMO’s role SIGB Jan 2009 Proactive lead role in Government ICT. Coordinate whole-of-government approaches with lead agencies. Realise economies of scale and reduce duplication across agencies
5.1.5 Establish a Program Board PM&C, Finance and AGIMO
Nov 2008 Effective and efficient governance overseeing the implementation of review recommendations and ensuring that the benefits are realised
High priority Medium priority Low priority
33 These are indicative costs only. Any costs under $100K have not been included. In developing a future resourcing plan agencies will need to determine whether further funding will be required for these activities.
Recommendation 1 – Strengthen pan-government governance
Chapter Six:Implementation ��
CABINET-IN-CONFIDENCE
CABINET-IN-CONFIDENCE 72
Recommendation 2 – Strengthen agency governance
Activity Responsibility Due date Benefits
5.2.1
a
Improve agency capability
Develop a common organisational capability methodology, undertake three pilots and assess the results
CabinetImplementation Unit, AGIMO and agencies
Sep 2009
b Roll out common organisational capability methodology across 28 large agencies and provide ongoing support
Agencies Sep 2010
c Large agencies to propose a target level of organisational capability that is independently validated, and develop a capability improvement plan
Agencies Dec 2010
Greater alignment of agency capability and IT investment. Increased likelihood of successful outcomes of projects as agencies undertaking these projects have a much better understanding of their capabilities. The Government is less likely to approve funding for new projects where agencies are not able to demonstrate a corresponding capability
d Develop and implement a ‘lite’ methodology for smaller agencies
AGIMO Jun 2010
e Agencies to undertake self assessment of organisational capability biannually to compare their actual capability against their target capability
Agencies Sep 2012
5.2.2 Strengthen the link between policy formulation and implementation
a Include agency capability assessment in the two-pass investment approval process
AGIMO Dec 2010 Alignment of agency capability and IT investment for 2011–12 Budget process
b Develop guidance on relative costs and benefits of COTS/GOTS
AGIMO Mar 2009 Transparent decision making, understanding the full life costs and future liability
c Implement Gate 0 Gateway reviews and integrate Gateway Review outcomes into NPP process
Finance Mar 2009 Improved investment decision-making and better planning/articulation by agencies of project outcomes and benefits
d Build on existing training and policy guidance for Senior Responsible Officials
Finance Jun 2009 Improved governance/ management of projects through greater understanding by SROs of their responsibilities
5.2.3 Identify a custodian of best practice in benefits realisation
CabinetImplementation Unit and AGIMO
Jan 2009 Improved management of benefits realisation by agencies through provision of practical advice and support to help agencies develop capability in this area
High priority Medium priority Low priority
Recommendation 2 – Strengthen agency governance
Chapter Six:Implementation�0
CABINET-IN-CONFIDENCE
73 CABINET-IN-CONFIDENCE
Recommendation 3 – Tighten the management of ICT business as usual funding
Activity Responsibility Due date Benefits
5.3.1 Target to move the split between BAU and creation of new capability through the following:
a Develop and agree a methodology, a common ICT chart of accounts and a common set of efficiency metrics
Finance Oct 2008
b Deploy ICT Review Teams to assist agencies identify reductions (phase 1). Seven teams to support 28 large agencies
Finance,includingexternalresources and agencysecondees
Mar 2009 Savings of approx $400M over 2 years, with release of resources for investment in developing new capability, as opposed to running the business. Inculcation of a culture of efficiency and cost-sensitivity within agencies
c Deploy ICT Review Teams (phase 2). Seven teams to support 28 large agencies
Sept 2009
d Assist smaller agencies to achieve target savings
Finance Dec 2009
5.3.2 Develop effectiveness metrics AGIMO/lead agencies
Jun 2009 Potential for savings by identifying areas where agencies’ performance is not effective, through meaningful comparisons/ benchmarking across agencies
Undertake annual benchmarking exercise AGIMO Dec 2009
High priority Medium priority Low priority
Recommendation 3 – Tighten the management of ICT business as usual funding
a
b Annual benchmarking exercise
Chapter Six:Implementation ��
CABINET-IN-CONFIDENCE
CABINET-IN-CONFIDENCE 74
Recommendation 4 – Enhance the management of the APS ICT skills base
Activity Respon-sibility
Due date Benefit
5.4.1 Create a whole-of-government ICT career structure
Develop a whole-of-government strategic ICT workforce plan
APSC, PM&C, AGIMOand lead agencies
Mar 2010
Mar 2010
Better managed workforce – reduced costs and less delays for ICT projects. Improved staff retention also brings secondary benefits such as retaining corporate knowledge
5.4.2 Reduce total APS contractors and increase the number of APS ICT staff
Agencies Oct 2010
5.4.4 Examine current security vetting processes and identify best practice
SIGB and AGD (PSPC)
Sep 2009 Reduced transaction costs and facilitation of transfer of resources between agencies
5.4.5 Equip organisational leaders’ to harness the potential benefits of ICT
APSC and AGIMO
Jun 2009 Promotion of greater understanding of ICT issues at senior levels of agencies will facilitate a more strategic focus on ICT and increased alignment with business priorities
5.4.6 Establishment of a whole-of-government tele-working policy
AGIMO Sep 2009 Assists with recruitment and retention making the government an attractive employer of ICT staff
5.4.7 Sponsorship of annual ICT awards APSC and AGIMO
Sep 2009 Making government employment more attractive through encouragement to ICT practitioners
High priority Medium priority Low priority
Recommendation 4 – Enhance the management of the APS ICT skills base
Chapter Six:Implementation��
CABINET-IN-CONFIDENCE
75 CABINET-IN-CONFIDENCE
Recommendation 5 – Data centres
Activity Responsibility Due date Benefit
5.5.1 Develop a whole-of-government data centre strategy
AGIMO and lead agency secondees
Sep 2009 Avoidance of a significant future cost through a coordinated approach to acquisition of data centre space as agencies currently have autonomous arrangements
High priority Medium priority Low priority
Recommendation 5 – Data centres
Chapter Six:Implementation ��
CABINET-IN-CONFIDENCE
CABINET-IN-CONFIDENCE 76
Recommendation 6 – Improve the efficiency and effectiveness of the ICT marketplace
Activity Responsibility Due date Benefits
5.6.1 Make better use of the Government’s collective buying power:
a Optimise the number of ICT panel arrangements established by agencies across government, including improving procurement arrangements for commodity products and services and volume sourcing arrangements for key items of software
Finance and agencies
Sep 2009 Reduce administrative and transaction cost
b Develop and implement e-auctions
Finance and agencies
Dec 2009 Reduced costs to agencies through harnessing government collective purchasing power
c Implement strategic management of key ICT suppliers
Finance and AGIMO
Sept 2009 Will enable a whole-of-government (single customer) perspective on key suppliers, with potential savings through coordinated approaches to suppliers, more responsive supplier performance through relationship-building and proactive consideration of developments in the vendor market
5.6.2 Work with industry to develop client and supplier codes of conduct
AGIMO and industry
Dec 09 Increased transparency and accountability in government procurement. More efficient market through entry of new vendors. Improve industry and government relationship
5.6.3 Reassess current IP policy AGD, AGIMO and lead agencies
June 09 Potential for reduced costs to agencies since vendors are able to grow revenue through leveraging IP
5.6.4 Integrate the Government’s ICT and SME policies
Finance and agencies
Sep 2009 More efficient market through facilitation of entry of SME suppliers
5.6.5 Consider the net benefit from the A$80K threshold under the Free Trade Agreement
DFAT Sep 2010 Potential for reduced transaction costs for agencies and suppliers through a decrease in the number of tender processes
High priority Medium priority Low priority
Recommendation 6 – Improve the efficiency and effectiveness of the ICT marketplace
Chapter Six:Implementation��
CABINET-IN-CONFIDENCE
77 CABINET-IN-CONFIDENCE
Recommendation 7 – Sustainability of ICT
Activity Responsibility Due date Benefit
5.7.1 Develop a whole-of-government ICT sustainability plan
AGIMO, DEWHA and agencies
Dec 2009 Contribute to the government’s overall agenda to manage carbon emissions, and reduced rate of growth in energy costs
b Agencies to develop an ICT energy efficiency plan
Agencies Mar 2010
c Develop Green ICT Procurement Kit
AGIMO Dec 2009
5.7.2 Green ICT quick wins AGIMO Mar 2009 Enables energy efficiency savings and builds momentum for a whole-of-government initiative
High priority Medium priority Low priority
Recommendation 7 – Sustainability of ICT
CABINET-IN-CONFIDENCE
77 CABINET-IN-CONFIDENCE
Recommendation 7 – Sustainability of ICT
Activity Responsibility Due date Benefit
5.7.1 Develop a whole-of-government ICT sustainability plan
AGIMO, DEWHA and agencies
Dec 2009 Contribute to the government’s overall agenda to manage carbon emissions, and reduced rate of growth in energy costs
b Agencies to develop an ICT energy efficiency plan
Agencies Mar 2010
c Develop Green ICT Procurement Kit
AGIMO Dec 2009
5.7.2 Green ICT quick wins AGIMO Mar 2009 Enables energy efficiency savings and builds momentum for a whole-of-government initiative
High priority Medium priority Low priority
Chapter Six: Implementation 85
Implementation activities fall into two broad categories: Those enabling activities which are one off and need to be undertaken at the beginning of or early in the implementation phase (e.g. the development of efficiency metrics), and those activities that are ongoing (e.g. the implementation and ongoing use of efficiency metrics). In most cases an ongoing activity is preceded by an enabling activity.
Chapter Six: Implementation86
Appendices ��
aPPendicesA TERMS OF REFERENCE
Review of the Australian Government’s use of Information and Communication Technology
1. ThereviewwillexamineandreportontheeffectivenessandefficiencyoftheAustralian
Government’scurrentuseofinformationandcommunicationtechnology(ICT)to
determinewhethertheGovernmentisrealisingthegreatestreturnfromitsinvestments
inICT,includingthewayinwhichICTcanbeusedtomeettheGovernment’sbroader
objectives,aswellasanarrowerfinancialreturn.Thereviewwillexaminewhetherwehave
therightinstitutionalarrangementsinplacetomaximisethereturn,andthemeansby
whichthereturnmightbeincreased.
2. Indeterminingthis,thereviewwillconsiderthefollowingissues:
a. howICThasbenefitedtheoperationsofgovernmentandhowthatbenefitismeasured;
b. theadequacyofcurrentcoordinationofICTbusinessplanningandinvestmentdecision-
makingprocessesandtheoptionsforandbenefitsofastrongerICTframeworkand/or
greatercoordinationifcurrentarrangementsareinadequate;
c. theexistingICTinvestmentsofagenciesandwhetherthereareopportunities
tomaximisetheuseofnewandexistingICTinvestmentsinordertomeetthe
Government’sbroaderobjectives;
d. thepossibleduplicationofICTsystems(suchasfinancialandhumanresource
management)acrossgovernmentagencies,whetheropportunityexiststoconsolidate
existingornewsystems,andwhatformanyconsolidationshouldtake;
e. theduplicationofbusinessprocessesacross,andwithinagencies,andtheeffectsthis
hasonthecoststogovernmentandthequalityofservicedelivery;
f. barriersposedbyexistinglegacyICTinvestmentsacrossagenciesandthepotentialfor
moreconsistencyinnewinvestments;
g. howagenciesmanagetheirstaffingrequirementsforICTprojects,whetherthereare
opportunitiestoimprovetheefficientuseofstaffandcontractresources,andwhether
competitivepressuresaredrivingupcosts;
h. theexistingICTgovernanceframeworkthatguidestheAustralianGovernment’suseof
ICTtodelivergovernmentoutcomes;
i. thepossibleroleoftheDepartmentofFinanceandDeregulation,orasimilarcentral
body,incontributingtomoreefficientandeffectiveuseofICTacrossgovernment;and
j. anyothermattersastheyarise,inconsultationwiththeMinisterforFinance
andDeregulation.
Appendices��
3. Tocollectrelevantinformationontheaboveissues,thereviewwillfocusontheuseofICTin
selectedAustralianGovernmentagenciesthatareamixoflargeandsmallusersofICT.
4. ThereviewwillprovideasnapshotofthecurrentstateofICTintheAustralianGovernment,
whatexistsandhowitismanagedtodeliverGovernmentobjectives.
5. ThereviewwillhaveregardtothebestpracticeapproachesofotherAustralianand
internationaljurisdictionsandtheprivatesector.
6. Thereviewwillalsohaveregardtoplannedworkonwhole-of-governmentICTprocurement.
7. ThereviewmustprepareareportfortheMinisterforFinanceandDeregulationby
September2008.ThereportshouldsetoutrecommendationstotheAustralian
GovernmenttodrivegreaterefficiencyintheuseofICTacrossgovernmentwhileenhancing
orimprovingthecapacityofICTtosupportserviceandprogramdelivery.
8. InformulatingrecommendationsthattheAustralianGovernmentshouldtakeaparticular
courseofaction,thereviewshouldassesstheresourcing,costs,benefitsandany
implementationrisksofthataction.
Appendices ��
B SUBMISSION QUESTIONS
Letter to Agencies
Independent Review of the Australian Government’s use of ICT
YouwillbeawarethatIhavebeenaskedbytheMinisterforFinanceandDeregulation,
theHon.LindsayTannerMP,toundertakeonbehalfoftheAustralianGovernmentan
IndependentReviewoftheAustralianGovernment’suseandmanagementofinformationand
communicationtechnology(ICT).
TheMinisterhasaskedmetoexamineandreportontheefficiencyandeffectivenessofthe
AustralianGovernment’scurrentuseandmanagementofICTtodeterminewhetherthe
GovernmentisrealisingthegreatestreturnfromitsinvestmentsinICT.Thisincludestheways
inwhichICTcanbeusedtomeettheGovernment’sbroaderobjectivesandthemeansbywhich
thefinancialreturntoGovernmentmightbeincreased.
Iparticularlywelcomethisopportunitytogainyourviewsontheissuesraisedbythereview’s
TermsofReference(seeAppendixAofthisdocument)andontheopportunitiestoincrease
theefficiencyandeffectivenessofthegovernment’suseofICT.Ihaveseparatelyrequestedthe
ICTReviewSecretariatthatislocatedinthedepartmentofFinanceandDeregulationtoseek
moredetaileddataonyourICTspend,bothonassetsandongoingexpendituresothatImight
constructaclearpictureofhowICTisusedcurrentlytodelivergovernmentservices.
Specifically,Iwouldbeverygratefulifyoucouldprovidemewithawrittensubmissioncovering
thefollowing:
• Whatarethestrategicprioritiesofyouragency,andhowdotheseprioritiesinformyourICT
strategyanddecisionsaboutyourICTinvestments?Whatareyourviewsonthecurrentand
futureimportanceofICTtoyouragency?HowdoyouprioritiseyourICTenabledprojects
andprogramsandresourceallocation(bothmoneyandpeople)?
• HowyoumeasurewhetheryourICTinvestmentsaremeetingtheirplannedoutcomes
andyourstrategicgoals?CanyouprovidedetailsofthemostrecentfivetotenmajorICT
enabledprojectsyouhaveundertakenandhowyoumeasuredtheirsuccessintermsofcost,
time,specificationanddeliveryofanticipatedbenefits?
• Howyoumeasureyourorganisation’scapabilitytocommission,manageanddeliver
successfulICTenabledprograms(i.e.frompolicydevelopmenttorequirementsspecification
todeliverytobenefitrealisation)?Whatisyourassessmentofyourcurrentcapability?Can
youprovidedetailsofanyplanstoimproveorincreasethatcapability?
• HowyouensurethatICTspend(bothoperatingandcapital)isasefficientandeffective
aspossible,andcanyouprovidedetailsoftheperformancemetricsthatareused?Can
youalsoprovidedetailsoftheperformancemetricsyouusetomeasuretheefficiencyand
Appendices�0
effectivenessofyourICTfunction(includingprioryear,currentyear,andtargetmeasures)?
Canyouprovidedetailsofanyplanstoincreasetheefficiencyand/oreffectivenessofyour
ICTfunctionandspend?
• CanyouprovidedetailsoftheriskmanagementprocessyouapplyforICTenabledprojects
andprograms?
• CanyouprovidedetailsofareasofbestpracticeappliedtothemanagementofyourICT
environmentthatcouldbesharedacrossgovernment?
Iamalsointerestedinyourviewsonthecurrentwhole-of-governmentarrangementsthatare
inplacetoguidetheAustralianGovernment’suseandmanagementofICT.Myunderstanding
isthattheDepartmentofFinanceandDeregulationcooperativelydevelopsvariousframeworks,
policies,standardsandsomecentralisedICTprocurementarrangementsthatseektoencourage
greatersharingandre-useofICTassetsandachievebestvalueformoney.Couldyouplease
indicatetheusefulnessofthese,youragency’sownlevelofuse,andanyissuesthatimpedeuse.
IwouldbemostgratefulifyoucouldprovideyourwrittensubmissiontotheICTReview
SecretariatatICTReview@finance.gov.au.Ifyouareabletoprovideanyofthematerialby
theendofMay,thiswouldbemuchappreciated.Iwouldappreciatefinalsubmissionsby
Friday13June2008,coveringthequestionsIhaveraisedandanyotheroptionsyouseeto
improvetheefficiencyandeffectivenessoftheGovernment’suseofICTincludingbarriersto
theiradoption.IrealisethatthistimetablewillbetightbutIdonotbelievetheseinformation
requestsshouldbeveryonerousifsoundgovernancearrangementsarealreadyinplace.This
willnotbethefinalopportunitytoinputtothereview,butthebasicinformationprovidedin
submissionsbythisdatewillenablemetoassembleareasonablycomprehensivepictureofICT
intheAustralianGovernmentinordertoinformfurtherdiscussionsandinvestigation.Itismy
intentiontoholdbilateralmeetingswithsomeagenciesandotherstakeholdersaftertheinitial
writtensubmissionshavebeenreceivedandanalysed.
Inthemeantime,theICTReviewSecretariatcanbecontactedon0262152524foranyqueries
regardingthisletter.
Yourssincerely
SirPeterGershon
Appendices ��
Letter to Industry
Independent Review of the Australian Government’s use of ICT
YoumaybeawarethatIhavebeenaskedbytheMinisterforFinanceandDeregulation,the
Hon.LindsayTannerMP,onbehalfoftheAustralianGovernment,toundertakeanIndependent
ReviewoftheAustralianGovernment’suseandmanagementofinformationandcommunication
technology(ICT).
IhavebeenaskedtoexamineandreportontheefficiencyandeffectivenessoftheAustralian
Government’scurrentuseandmanagementofICTtodeterminewhethertheGovernmentis
realisingthegreatestreturnfromitsinvestmentsinICT.ThisincludesthewaysinwhichICTcanbe
usedtomeettheGovernment’sbroaderobjectivesandthemeansbywhichthefinancialreturnto
Governmentmightbeincreased.
Iparticularlywelcomethisopportunitytogainyourviewsontheissuesraisedbythereview’sTerms
ofReference(seeAppendixAofthisdocument).Specifically,Iwouldbeverygratefulifyoucould
providemewithawrittensubmissioncoveringthefollowing:
• Whereyouthinkthataggregationorstandardisationwoulddriveeconomiesofscalebenefitsfor
theAustralianGovernment;
• WhethertheGovernment’srequirementsinhibittheuseofCommercialOfftheShelfproducts
withoutcustomisation;
• HowyouratetheAustralianGovernmentcomparedto:
o yourothergovernmentclientselsewhereintheworld(ifrelevant)
o yourAustralianprivatesector,stateandlocalgovernmentclients;and
• Whetherthereareanykeybestpracticetechniqueswhich:
o theAustralianGovernmentalreadyhasbuthasn’tfullydeployed;
o areutilisedelsewhereinAustraliaorinternationallywhichtheAustralianGovernment
shouldadopt.
IwouldbemostgratefulifyoucouldprovideyourwrittensubmissiontotheICTReviewSecretariat
atICTReview@finance.gov.aubyFriday30May2008coveringthequestionsIhaveraisedandany
otheroptionsyouseetoimprovetheefficiencyandeffectivenessoftheGovernment’suseand
managementofICTincludingbarrierstotheiradoption.Itismyintentiontoholdbilateralmeetings
withasmanyindustrystakeholdersandrepresentativebodiesaspossibleaftertheinitialwritten
submissionshavebeenreceivedandanalysed.
PleasecontacttheICTReviewSecretariaton(02)62152524shouldyouhaveanyquestionsabout
thismatterorthereview.
Yourssincerely
SirPeterGershon
Appendices��
C SURVEY INSTRUMENT
Survey approach
Thereviewsurveywasissuedtoall100CommonwealthGovernmentAgenciesthatwere
regulatedbytheFinancial Management and Accountability Act 1997(FMAAct).Ofthe
identifiedagencies,fourwereexemptfromprovidingareturnasagreedwiththeSecretariat
(includingtwonationalsecurityagencies),fivesmallagenciesdidnotprovidearesponse
(theseagencieswereinsignificantinsizeanddidnotdetractfromthecomprehensivenature
ofthedatacapturedfromagenciesthatresponded),andafurthereightagencies’returnswere
incorporatedwithinanother(lead)agencyreturn.
Intotal,86returnswerereceivedcovering91agenciesandenteredintothesurveydatabase.
Threeofthe86returnswerefromagencieswhichareincorporatedwithinotherFMAAct
agencies.Oneoftheseoperatesrelativelyautonomouslyandhasbeentreatedasaseparate
agencyforthepurposesofthesurveyanalysis.Theothertwohaverecentlybeenincorporated
intoanotheragencyandthetreatmentoftheseagenciesvariesdependingonthenatureofthe
analysis.Forexample,theyhavebeentreatedasonelargeagencyforthepurposesofanalysing
totalICTspend,buttreatedasthreeagencieswhenlookingatthelevelofcustomisationof
financialandhumanresourceinformationmanagementsystems.
Thecompletedresponsesweregroupedviathesizeoftheagencyandprovidedthefollowing
sizeprofile:
• Large:agencies(includingDefence)withover$20millionofICTspendin2007–08
(29intotal)
• Medium:agencieswithbetween$2millionand$20millionofICTspendin2007–08
(26intotal)
• Small:agencieswithlessthan$2millionofICTspendin2007–08(29intotal).
TheABS2002–03GovernmentTechnologySurveystructurewasusedasabaseforthesurveyand
expandedtocapturedetailedinformationonspecificareasofinterestforthereview.Theadditional
areasincludedinthesurveywerewebsites,desktops,telecommunications,financialmanagement
informationsystems,humanresourcemanagementinformationsystemsandgrantsmanagement
systems.OtherspecificsurveyareasincludedICTenergyandICTstaffingresources,wherethe
surveycapturedinformationoneachagency’sprofileandemploymentmetrics.
Asmallagencysurveywasprovidedtoalimitednumberofagenciesthathad50orlessstaffin
ordertominimisetheimpactofthesurveyontheseagencies.
Appendices ��
Survey sections
Thesurveyinstrumentwasstructuredineightsectionsrepresentedbyseparateworksheets,
withinthesurveyworkbook,describedinmoredetailbelow:
Introduction(includinggeneraldefinitions)
Part1 AgencyICTprofile
Part2 Employmentmetrics
Part3 Expenseitems(focusingprimarilyonsalariesandwagesandcontractorcosts)
Part4 Otheroperatingexpenses
Part5 Capitalexpenditure
Part5a Capitalexpenditureonsoftwaresystems
Part5b Capitalexpenditure–majorICTinvestments
Part6 Generalquestions(capitalexpendituredetails,financialmanagementinformation
systems,humanresourcemanagementinformationsystems,grantsmanagement
systems,websitesandtelecommunications
Part6a(i)Communications–contractdetails
Part6a(ii) Communications–connectiondetails
Part6a(iii) Communications–pricingdetails
Part6b Grantmanagementsystemdetails
Part6c Websitedetails
Part6d MajorITcontracts
Part7 ICTstaffingprofile
Part7a Resourcepayprofile
Survey return completion and sign-off
Eachsectionconcludedwithafree-formcommentaryboxwhichprovidedagencieswithan
opportunitytoprovideexplanationsand,specifically,todetailadditionalinformationrelating
tounusualcircumstancesthatmeantanswerstoquestionsneededtobeinterpretedinthe
correctcontext;andmajorone-offvariationstoactivitylevelsorcosts.
Appendices��
Survey addendum
Duringthesurveycompletionperiod,additionalinformationrequirementswereidentifiedthat
wereconsideredimportanttotheanalysisofthesurveydata.Asaresult,asurveyaddendum
wasdistributedtoallrespondents.Theaddendumrequiredseparateanddiscretedatatobe
reportedinadditiontotheoriginalsurveyinstrument.Thesurveyinstrumentaddendumwas
structuredinfivesectionsreflectingextensionsandadditionstotheoriginalsurveyinstrument:
Part8 Staffexpense,operatingexpenseandcapitalexpenditure–Businessasusual
andproject
Part9 Depreciation
Part10 Networkgatewaydetails
Part11 Resourceprofile
Part12 Resourcepayprofile
Completion and treatment
Thesurveywasreleasedon19May2008andwastobecompletedandsubmittedtotheReview
Secretariatby18July2008.Ahelpdeskwasprovidedtoassistallagencieswithanyissues
associatedwiththesurveyresponse.
Thesmallagencysurveywasdistributedtoselectedsmallagencieson27May2008,withthe
samecompletiondateof18July2008.
Thesurveyaddendumwasdistributedon13June2008andwastobecompletedand
submittedby18July2008.
Noextensionstothecompletiontimewereprovided.
Additional data collection
Inadditiontothedatasurvey,alimitedsurveyofdatacentreswasundertakenwith16ofthe
largestFMAActagencies,andtheAIIAkindlyundertook,atthereview’srequest,alimited
surveyofitsSMEmembers.
Appendices ��
D SUBMISSIONS RECEIVED
Within Australian Government
Attorney-General’sDepartment(AGD)
AustralianAgencyforInternationalDevelopment(AusAID)
AustralianBureauofStatistics(ABS)
AustralianCommunicationsandMediaAuthority(ACMA)
AustralianCompetitionandConsumerCommission(ACCC)
AustralianCrimeCommission(ACC)
AustralianCustomsService(ACS)
AustralianElectoralCommission(AEC)
AustralianFederalPolice(AFP)
AustralianNationalAuditOffice(ANAO)
AustralianPublicServiceCommission(APSC)
AustralianSecuritiesandInvestmentsCommission(ASIC)
AustralianSportsCommission(ASC)
AustralianTaxationOffice(ATO)
AustralianTradeCommission(Austrade)
BureauofMeteorology(BOM)
ComSuper
DepartmentofAgriculture,FisheriesandForestry(DAFF)
DepartmentofBroadband,CommunicationsandtheDigitalEconomy(DBCDE)
DepartmentofDefence(DoD)
DepartmentofEducation,EmploymentandWorkplaceRelations(DEEWR)
DepartmentoftheEnvironment,Water,HeritageandtheArts(DEWHA)
DepartmentofFamilies,Housing,CommunityServicesandIndigenousAffairs(FaHCSIA)
DepartmentofFinanceandDeregulation(DoFD)
DepartmentofForeignAffairsandTrade(DFAT)
DepartmentofHealthandAgeing(DoHA)
DepartmentofHumanServices(DHS)–includesCentrelinkandMedicareAustralia
Appendices��
DepartmentofImmigrationandCitizenship(DIAC)
DepartmentofInfrastructure,Transport,RegionalDevelopmentandLocalGovernment(DITRDLG)
DepartmentofInnovation,Industry,ScienceandResearch(DIISR)
DepartmentofParliamentaryServices(DPS)
DepartmentofthePrimeMinisterandCabinet(PM&C)
DepartmentofResources,EnergyandTourism(RET)
DepartmentofVeterans’Affairs(DVA)
FamilyCourtofAustralia(FCA)
GeoscienceAustralia(GA)
IPAustralia(IPA)
NationalArchivesofAustralia(NAA)
OfficeoftheDirectorofPublicProsecutions(DPP)
DepartmentoftheTreasury
Invited industry submissions
AccentureAustraliaHoldingsPtyLtd
ACERComputerAustraliaPtyLtd
ApplePtyLtd
APPSGlobalPtyLtd
AvayaAustraliaPtyLtd
BoozandCompanyInc
BostonConsultingGroupPtyLtd
CA(Pacific)PtyLtd
CiscoSystemsAustraliaPtyLtd
CitrixSystemsAsiaPacificPtyLtd
ClicksITRecruitment
CommanderCommunicationsLimited
ComputerSciencesCorporation(CSC)AustraliaPtyLtd
CPTGlobalLimited
DELLAustraliaPtyLtd
DimensionDataAustraliaPtyLtd
Appendices ��
DistillerySoftwarePtyLtd
EDS(Australia)PtyLtd
Ernst&Young
FujiXeroxAustraliaPtyLtd
Fujitsu(Aust)PtyLtd
FunnelbackPtyLtd
GoogleAustraliaPtyLtd
HewlettPackardAustraliaPtyLtd
HitachiDataSystemsAustraliaPtyLtd
IBMAustraliaLimited
INTELAustraliaPtyLtd
KPMG
MacquarieTelecom
ManpowerServices(Australia)PtyLtd
MicrosoftCorporation
Oakton–AcumenAlliance
SingTelOPTUSPtyLtd
PeopleBankAustraliaLimited
PricewaterhouseCoopers(PWC)
RedHatAsiaPacific
SAPAustraliaPtyLtd
SHARPCorporationofAustraliaPtyLtd
SMSManagement&TechnologyLimited
SunMicrosystemsAustraliaPtyLtd
Talent2PtyLtd
TechnologyOneLimited
TelstraCorporationLimited
UNISYSAustraliaPtyLtd
UXCLimited
VerizonBusiness
Appendices��
Invited representative bodies’ submissions
AustralianComputerSociety(ACS)Inc
AustralianIndustryGroup(AiGroup)
AustralianInformationIndustryAssociation(AIIA)
Community&PublicSectorUnion(CPSU)
OpenSourceIndustryAustraliaLimited
Other submissions
DrRAndrews
APMGroup
AustralianGovernmentLibrariesInformationNetwork(AGLIN)
AustralianSchoolofBusiness–TheUniversityofNewSouthWales
MrKBeck
MsJBoston
MrLBunting
MrSCoates
CuramSoftware
MrAGreig
GrenfellConsultancyServicesPtyLtd
MrMHart
IndigoInformationSystem
InsiteInteractive
KyoceraMitaAustraliaPtyLtd
QueenslandGovernment
SolvedatMcConchiePtyLtd
TannerJamesManagementConsultants
TeradataAustraliaPtyLtd
TheHelmsmanInstitute
TheProjectGroup
Appendices ��
E CONSULTATIONS
Ministers
TheHon.KevinRudd,MP,PrimeMinister
TheHon.LindsayTanner,MP,MinisterforFinanceandDeregulation
SenatortheHon.KimCarr,MinisterforInnovation,Industry,ScienceandResearch
TheHon.JennyMacklin,MP,MinisterforFamilies,Housing,CommunityServicesand
IndigenousAffairs
SenatortheHon.JoeLudwig,MinisterforHumanServices
SenatortheHon.JohnFaulkner,SpecialMinisterofState
SenatortheHon.StephenConroy,MinisterforBroadband,Communicationsandthe
DigitalEconomy
Departments and agencies
MeetingswereheldwithteamsledbytherespectiveSecretaries/CEOsortheirnomineeswith
thefollowingagencies.
Attorney-General’sDepartment
DepartmentofBroadband,CommunicationsandtheDigitalEconomy
DepartmentofDefence
DepartmentofEducation,EmploymentandWorkplaceRelations
DepartmentofFinanceandDeregulation
DepartmentofForeignAffairsandTrade
DepartmentofHealthandAgeing
DepartmentofHumanServices
DepartmentofImmigrationandCitizenship
DepartmentofInnovation,Industry,ScienceandResearch
DepartmentofthePrimeMinisterandCabinet
DepartmentoftheTreasury
AustralianCustomsService
AustralianNationalAuditOffice
AustralianTaxationOffice
Appendices�00
AustralianBureauofStatistics
BureauofMeteorology
Centrelink
DefenceMaterielOrganisation
MedicareAustralia
TheAustralianGovernmentInformationManagementOffice(AGIMO),DepartmentofFinance
andDeregulation
Inaddition:
FourPortfolioSecretariesmeetings
Secretaries’CommitteeonICT(SCICT)
BusinessProcessTransformationCommittee(BPTC)–ChiefInformationOfficerCommittee
(CIOC)meeting
CrossJurisdictionChiefInformationOfficerCommittee(CJCIOC)–meeting
Roundtablemeetingwithnon-PortfolioSecretariesfromacross-sectionofagencies
ChiefInformationOfficerForum(CIOF)–meeting
Other
SenatorKateLundy,SenatorfortheAustralianCapitalTerritory
MeetingswereheldwithteamsledbytherespectiveSeniorExecutivesortheirnomineeswith
thefollowingrepresentativeandindustrybodies.
AustralianComputerSociety(ACS)Inc
AustralianIndustryGroup(AiGroup)
AustralianInformationIndustryAssociation(AIIA)industry–roundtablemeeting
Community&PublicSectorUnion(CPSU)
Industry
Booz&CompanyInc
BostonConsultingGroupPtyLtd
CiscoSystemsAustraliaPtyLtd
CPTGlobalLimited
CSCAustraliaPtyLtd
Appendices �0�
DELLAustraliaPtyLtd
EDS(Australia)PtyLtd
Ernst&Young
FujiXeroxAustraliaPtyLtd
HewlettPackardAustraliaPtyLtd
HitachiDataSystemsAustraliaPtyLtd
IBMAustraliaLimited
KPMG
MicrosoftCorporation
SingTelOPTUSPtyLtd
PriceWaterhouseCoopers(PWC)
SAPAustraliaPtyLtd
Cross-sectionofsmallandmediumenterprises(SMEs)–roundtablemeeting
TelstraCorporationLimited
TERRiA
UnisysAustraliaPtyLtd
Appendices�0�
F AGENCIES WITH ICT SPEND OVER $20 MILLION IN 2007–08
Basedontheirinputtothesurvey,theagencies(excludingDefence)withICTspendinexcessof
$20millionin2007–08are:
1. Attorney-Generals’Department
2. AUSTRAC
3. AusTrade
4. AustralianBureauofStatistics
5. AustralianCrimeCommission
6. AustralianCustomsService
7. AustralianFederalPolice
8. AustralianSecuritiesandInvestmentsCommission
9. AustralianTaxationOffice
10. BureauofMeteorology
11. Centrelink
12. ComSuper
13. Crimtrac
14. DepartmentofAgriculture,FisheriesandForestry
15. DepartmentofEducation,EmploymentandWorkplaceRelations
16. DepartmentoftheEnvironment,Water,HeritageandtheArts
17. DepartmentofFamilies,Housing,CommunityServicesandIndigenousAffairs
18. DepartmentofFinanceandDeregulation
19. DepartmentofForeignAffairsandTrade
20. DepartmentofHealthandAgeing
21. DepartmentofHumanServices–ChildSupportAgency
22. DepartmentofImmigrationandCitizenship
23. DepartmentofInfrastructure,Transport,RegionalDevelopmentandLocalGovernment
24. DepartmentofInnovation,Industry,ScienceandResearch
25. DepartmentofParliamentaryServices
26. DepartmentofVeterans’Affairs
27. IPAustralia
28. MedicareAustralia
Appendices �0�
G AGENCIES WITH ICT SPEND $2 MILLION TO $20 MILLION IN 2007–08
Basedontheirreturnstothesurvey,agencieswithICTspendsbetween$2millionand$20million
toachievea7.5%reductionbasedon2007–08ICTspendoverthenext2Budgetyearsare:
1. AdministrativeAppealsTribunal
2. AusAID
3. AustralianNationalAuditOffice
4. AustralianCommunicationsandMediaAuthority
5. AustralianCompetitionandConsumerCommission
6. AustralianElectoralCommission
7. AustralianIndustrialRegistry
8. AustralianPrudentialRegulationAuthority
9. AustralianPublicServiceCommission
10. DepartmentofBroadband,CommunicationsandtheDigitalEconomy
11. DepartmentofthePrimeMinisterandCabinet
12. DepartmentoftheSenate
13. FamilyCourtofAustralia
14. FederalCourtofAustralia
15. GeoscienceAustralia
16. GreatBarrierReefMarineParkAuthority
17. Insolvency&TrusteeServiceAustralia
18. MigrationReviewTribunalandRefugeeReviewTribunal
19. NationalArchivesofAustralia
20. NationalHealthandMedicalResearchCouncil
21. NationalNativeTitleTribunal
22. OfficeofNationalAssessments
23. OfficeoftheCommonwealthDirectorofPublicProsecutions
24. TherapeuticGoodsAdministration
25. DepartmentoftheTreasury
26. WorkplaceAuthority
Appendices�0�
H CANDIDATES FOR WHOLE-OF GOVERNMENT APPROACHES
Somecandidatesforconsiderationforwhole-of-governmentapproaches,subjecttoopt-out,
overthefirst2yearsoftheSecretaries’ICTGovernanceBoard(SIGB)’sexistenceinclude
(inalphabeticalorder):
• AustralianGovernmentArchitecture
• AustralianGovernmentInteroperabilityFramework
• BusinessPortal
• CareerstructureforICTstaff
• CitizenPortal
• Clientcodeofconduct
• Commonbusinessprocesses
• CommonEmailSystem
• CommonHighSecurityNetwork
• CommonLowSecurityNetwork
• Commonmethodologyforassessingorganisationalcapability
• Commonprojectmanagementtoolsfordifferentsizesofprojects
• Criteriaforassessingrequestedopt-outs
• Criteriafortheidentification,operationandsustainingofCentresofExcellencewithin
theGovernment
• Datacentrestrategy
• ICTsustainabilityplan
• ICTsystemstoimprovethemanagementoftheGovernment’spresenceoutsideAustraliain
linewiththePrimeMinister’sDirective.
• ICTworkforceplanningtool
• Keysupplierstobesubjecttostrategicmanagement
• PlanstosupporttheGovernment’sSMEagenda,throughICTprocurement
• Rationalisationofthenumberofphysicaltelecommunicationlinks,bothwithinAustralia
andinternationally
• Systemsandapplicationswhereacquisitionsorupgradesarecustomisedorbespoke
solutionswillrequireapprovalbytheMinisterialCommittee.
• Volumearrangementsforcommodityhardwareproductsandtelecomservices
• Volumesourcingagreementsforcommonlyusedsoftware.
TheabovelistincludessomeexistingAGIMOoutputswhichwillneedtobeformallyconfirmed
aswhole-of-governmentarrangementssubjecttoopt-out.
Appendices �0�
I PROPOSED CRITERIA FOR WHOLE-OF-GOVERNMENT APPROACHES AND ARRANGEMENTS SUBJECT TO OPT-OUT
Asaguidingprinciple,whole-of-governmentapproachesandarrangementssubjecttoopt-out
shouldbeconsiderediftheyprovideclearsuperioroutcomesfortheGovernmentand/orthe
taxpayer,overautonomousapproachesbyagencies.
Oneormoreofthefollowingcriteriashouldapply:
• Economyofscaleofbenefitswhichdonothaveasignificantadverseimpactonwider
Governmentpolicies
• Theabilitytomovetowardsmorejoined-upservicesforcitizensandbusinessisenhanced
• ThemanagementanddevelopmentofscarceICTskillswithintheAPSisstrengthened
• TheoperationoftheGovernmentICTmarketplaceisimproved
• OtherkeyprioritiesoftheGovernment(forexample,SMEs,sustainability)arereinforced
• Duplicationofcostsareavoided
• Futureflexibilityformachineryofgovernmentchangesisenhanced
• TheabilitytorespondtoexternalICTrelatedissuesandtrendsisimproved
• TheabilitytomanageandleveragetheGovernment’sinformationassets,havingdueregard
toprivacyconcernswhereappropriate,isenhanced.
Appendices�0�
J PROPOSED ROLE OF AGIMO
Basedonmyrecommendations,theroleofAGIMOwouldinclude:
• Identifyingtheneedforcommonapproaches(inareassuchasstandards,platforms,
applications,infrastructure,businessprocessandaggregatedICTprocurement)and
preparingtheassociatedbusinesscasesfortheSIGB
• WhereagreedbytheSIGB,appropriateinvolvementinthedevelopmentandimplementation
ofcommonapproaches(thisincludesaspectrumrangingfromaleadershiprolethrough
provisionofsomeresources,toparticipationinthegovernancearrangements)
• StrategicmanagementofkeyICTsuppliers
• FunctionalleadershipoftheAPSICTprofessionalcommunity
• Undertakinganannualbenchmarkingexerciseofagenciesagainstthecommonefficiency
andeffectivenessmetricsandthenprovidingagencieswithdetailedfeedbackandtheSIGB
withasummaryreportidentifyingkeytrends
• LeadingtheCIOC,BPTCandCIOFinidentifyingemergingissuesandtrends,anddelivering
potentialresponsesforconsiderationbytheSIGB
• Annuallyconstructingthewhole-of-governmentICTworkforceplanandidentifyinganykey
issuestogetherwithadviceforaddressingthemtotheSIGB
• ScrutinyofNPPsagainstareasagreedforopt-outbytheSIGB
• Scrutinisingopt-outrequestsagainstagreedcriteriaandprovidingadvicetotheSIGBand
theMinisterialCommittee
• Facilitatingthespreadofgoodpractice
• Maintainasingleauthoritative‘sourceoftruth’forICTpolicies.
Appendices �0�
K LINKAGE BETWEEN TERMS OF REFERENCE AND RECOMMENDATIONS
Thisappendixsetsoutthelinkagebetweenthereviewsrecommendationsandthereview’s
TermsofReference.
1. ThereviewwillexamineandreportontheeffectivenessandefficiencyoftheAustralian
Government’scurrentuseofinformationandcommunicationtechnology(ICT)to
determinewhethertheGovernmentisrealisingthegreatestreturnfromitsinvestments
inICT,includingthewayinwhichICTcanbeusedtomeettheGovernment’sbroader
objectives,aswellasanarrowerfinancialreturn.Thereviewwillexaminewhetherwehave
therightinstitutionalarrangementsinplacetomaximisethereturn,andthemeansby
whichthereturnmightbeincreased.
[Achieved–setoutinChapter4KeyFindings,Chapter5Recommendationsand
Chapter6Implementation]
2a. howICThasbenefitedtheoperationsofgovernmentandhowthatbenefitismeasured;
[Recommendations5.2.2,5.2.3,5.3.2]
2b. theadequacyofcurrentcoordinationofICTbusinessplanningandinvestment
decision-makingprocessesandtheoptionsforandbenefitsofastrongerICTframework
and/orgreatercoordinationifcurrentarrangementsareinadequate;
[Recommendations5.1.1,5.1.2,5.1.3,5.2.1,5.2.2,5.6.1]
2c. theexistingICTinvestmentsofagenciesandwhetherthereareopportunities
tomaximisetheuseofnewandexistingICTinvestmentsinordertomeetthe
Government’sbroaderobjectives;
[Recommendations5.3.1,5.5.1,5.7.1,5.7.2]
2d.thepossibleduplicationofICTsystems(suchasfinancialandhumanresource
management)acrossgovernmentagencies,whetheropportunityexiststoconsolidate
existingornewsystems,andwhatformanyconsolidationshouldtake;
[Recommendations5.2.2,5.3.3]
2e. theduplicationofbusinessprocessesacross,andwithinagencies,andtheeffectsthis
hasonthecoststogovernmentandthequalityofservicedelivery;
[Recommendations5.1.2,5.3.3]
2f. barriersposedbyexistinglegacyICTinvestmentsacrossagenciesandthepotentialfor
moreconsistencyinnewinvestments;
[Recommendations5.3.1,5.2.2,5.3.1]
2g.howagenciesmanagetheirstaffingrequirementsforICTprojects,whetherthereare
opportunitiestoimprovetheefficientuseofstaffandcontractresources,andwhether
competitivepressuresaredrivingupcosts;
[Recommendations5.4.1,5.4.2,5.4.3,5.4.4,5.4.5,5.4.6,5.4.7]
Appendices�0�
2h.theexistingICTgovernanceframeworkthatguidestheAustralianGovernment’suseof
ICTtodelivergovernmentoutcomes;
[Recommendations5.1.1,5.1.2,5.1.3,5.2.1]
2i. thepossibleroleoftheDepartmentofFinanceandDeregulation,orasimilarcentral
body,incontributingtomoreefficientandeffectiveuseofICTacrossgovernment;and
[Recommendations5.1.4,5.1.5]
2j. anyothermattersastheyarise,inconsultationwiththeMinisterforFinance
andDeregulation.
[Recommendation5.2.4]
3. Tocollectrelevantinformationontheaboveissues,thereviewwillfocusontheuseofICTin
selectedAustralianGovernmentagenciesthatareamixoflargeandsmallusersofICT.
[Achievedviasubmissions,meetingsandsurvey]
4. ThereviewwillprovideasnapshotofthecurrentstateofICTintheAustralianGovernment,
whatexistsandhowitismanagedtodeliverGovernmentobjectives.
[Achievedviasubmissions,meetings,surveyandChapter4KeyFindings]
5. ThereviewwillhaveregardtothebestpracticeapproachesofotherAustralianand
internationaljurisdictionsandtheprivatesector.
[Achievedviasubmissionsandmeetings]
6. Thereviewwillalsohaveregardtoplannedworkonwhole-of-governmentICTprocurement.
[Recommendations5.6.1,5.6.2,5.6.3,5.6.4,5.6.5]
7. ThereviewmustprepareareportfortheMinisterforFinanceandDeregulationby
September2008.ThereportshouldsetoutrecommendationstotheAustralian
GovernmenttodrivegreaterefficiencyintheuseofICTacrossgovernmentwhileenhancing
orimprovingthecapacityofICTtosupportserviceandprogramdelivery.
[Achieved]
8. InformulatingrecommendationsthattheAustralianGovernmentshouldtakeaparticular
courseofaction,thereviewshouldassesstheresourcing,costs,benefitsandany
implementationrisksofthataction.
[Achieved–setoutinChapter6Implementation]
Appendices �0�
L DETAILS OF ICT REVIEW TEAM
Mr Wayne Cooper
AustralianGovernmentInformationManagementOffice
DepartmentofFinanceandDeregulation
Ms Kristy Dam
AustralianTaxationOffice
Mr Gary Davis
DepartmentofEmployment,EducationandWorkplaceRelations
Ms Robyn McLeod
AustralianGovernmentInformationManagementOffice
DepartmentofFinanceandDeregulation
Mr Anthony O’Connor
Centrelink
Ms Fabiola Peresan
AustralianGovernmentInformationManagementOffice
DepartmentofFinanceandDeregulation
Mr Saul Schneider
AustralianGovernmentInformationManagementOffice
DepartmentofFinanceandDeregulation
Mr Brian Stewart
AustralianGovernmentInformationManagementOffice
DepartmentofFinanceandDeregulation
Mr Scott Wallace
AustralianGovernmentInformationManagementOffice
DepartmentofFinanceandDeregulation