Gershon Reaction

Major Federal Government departments have been sluggish in adopting IT budget cuts recommended in the Gershon Review.

The report was intended to be part of Finance Minister Lindsay Tanner's ongoing razor-gang program of spending cutbacks. Tanner's department commissioned Sir Peter Gershon, a UK veteran of public-sector procurement thrift, to prepare the report.

Sir Peter worked on his review between April and August, and publically released it to doom-and-gloom speculation in October. His advice focussed on coordinated whole-of-government procurement, streamlining business-as-usual systems and replacing expensive outsourcing with more internal IT staff.

The new year, however, has shown a largely indifferent public sector. Six months after the report's completion, few of its much-vaunted recommendations have yet been significantly enacted.

The Department of Immigration and Citizenship has put 60 IT jobs on the market, and maverick Defence CIO Greg Farr will shed 100 contractors. Furthermore, the Australian Tax Office is making reserved moves towards an agenda of gradual change.

Many other major departments, however, have made only token adoptions of the principles of the review. None have made any significant announcements regarding the report since it was initially released.

The release of Gershon's review was initially met by criticism and skepticism from the IT industry, however, the review also recommended government expenditure in order to increase efficiency and fund new projects.


STOP PRESS: The Department of Foreign Affairs and Trade has announced job cuts amongst IT contractors. The Department of Innovation has also indicated it may use 2009 to reduce dependence upon contractors.

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