Feds rethink govt outsourcing framework

Feds rethink govt outsourcing framework

The federal government has announced a new industry framework for IT outsourcing within commonwealth agencies.

In a shift away from the centralised approach under the Office of Asset Sales and IT Outsourcing (OASITO), the government will allow individual agencies to manage their own IT outsourcing arrangements.

IT Minister Senator Alston said the new framework would be two-tiered with contracts worth less than $10 million provided by suppliers endorsed under the Endorsed Supplier Arrangement while bigger contracts will need to meet a requirement to have small- to medium-sized enterprises (SME) involvement and Australian value-added content.

The framework was developed after consultation with outsourcing providers, SMEs and a cross section of commonwealth departments and agencies.

The government has also developed an online notification system to ensure SMEs are aware of relevant IT outsourcing opportunities and that agencies have information about companies interested in tendering for contracts.

Senator Alston said the IT department will assist in evaluating the industry development component in larger contracts but will not try to drive contract-by-contract development outcomes.

He said strategic development objectives will be incorporated in a new framework that will apply to companies with significant sales to the government.

This will replace the existing Partnerships for Development program, and out-of-scope contractual obligations.

A copy of the framework is available online at

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