WA government to slash ICT costs with services model

The Western Australian government has announced a new program that aims to slash hundreds of millions from the costs of the government’s ICT infrastructure while improving services and efficiency.

The GovNext-ICT program is designed to transition away from owning and operating ICT infrastructure and towards having IT delivered as a service from private industry.

At a briefing announcing the program, Finance Minister Bill Marmion said the government spends between three and five percent of its budget on ICT.

“It is imperative we get maximum value for taxpayers by leveraging our buying power and reducing duplication,” he said.

“GovNext-ICT is about paying only for what we use, moving away from owning and operating ICT infrastructure, so we can concentrate on delivering the business of government. Estimated savings of $65 million a year are achievable.”

He said the government has estimated that if it continues to operate traditional ICT services, total budgets would balloon to over $3 billion annually within the next three years.

“There is no reason for the WA government to buy, own and operate its own infrastructure,” he said.

The government’s long-term commitment to the GovNext-ICT program is expected to convince private companies to build their own local infrastructure that is superior to that owned by the state, Marmion added.

“For example, indications are that we can deliver an initial five-fold increase in internet speeds for our regional schools, with a potential 50-fold increase.”

A total of nine agencies representing 80% of the government’s ICT spend are committed to the new program, giving it the benefit of economies of scale.

The government has invited expressions of interest from IT service providers that may want to apply to take part in the program.

Image courtesy of Dave Dugdale under CC