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Central Government, Government CFO, Government Procurement, Policy

Australia targets US$2 billion in ICT cost savings

By Shahida Sweeney | 13 July 2012 | Views: 2491

The Australian Government is targeting US$2 billion (AUD$2 billion) in savings from a better use of ICT services – while using its purchasing power to negotiate terms and conditions with suppliers.

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These savings are outlined in a report released 13th July by the Minister for Finance, Penny Wong. The report, “Driving Efficiency in the Australian Government” canvasses a raft of cost controls over the next four years.

These focus on more astute use of technology, while cutting down on duplication and operational overheads.

New measures include the introduction of an integrated Parliamentary workflow management system, a “leaner” ICT network and communications backbone, and improved electronic record-keeping.

Teleconferencing and video-conferencing will replace travel, enabling agencies to save on meetings and consultations.

Government recruitment ads are being migrated on-line – helping defray the cost of using traditional print channels.

Among recent allocations, the 2012-13 budget earmarks US$10 million (AUD$10 million) to develop an electronic Parliamentary workflow system. This system, when fully operational, will deliver savings of US$30 (AUD$30 million).

Presently, different agencies use different systems to manage briefings to ministers, responses to Parliamentary questions, and ministerial correspondence. Moreover, some agencies still use manual workflow systems.

A modernised Parliamentary workflow system will deliver a single centrally-hosted solution across 41 key agencies that come under the Financial Management and Accountability Act.

This integrated reporting system also slashes duplication, while improving workflow between agencies and ministerial offices.

This system is being developed and hosted by the Department of Education, Employment and Workplace Relations. Funding for this project will be fully recovered from participating agencies.

The Department of Finance and Deregulation will manage future governance arrangements to implement this system.

Earlier cost-saving measures have included moving more government services on-line to save administrative overheads.

These on-line services are making it easier for citizens to access healthcare, child support, and employment services, including those provided by Centrelink, Medicare and Child Support.

Centrelink is modernising its electronic document management system, as a result, cutting back on paper-based record-keeping and associated over-heads.

Additionally, a “leaner ICT backbone” will reduce network management and communications overheads.

Whole-of-government ICT cost reductions are being delivered by leveraging the size of the Australian Government to negotiate better terms for the supply of ICT goods and services.

The emphasis is on identifying inefficient practices, while implementing change and sharing new ideas or approaches, Minister Wong says.