Budget buries IT outsourcing agency

Budget buries IT outsourcing agency

In its 2001/02 Budget, the Federal Government dumped the agency responsible for the controversial IT outsourcing initiative.

The Office of Asset Sales and Information Technology Outsourcing (OASITO) was effectively buried as part of the Government's budget announcements.

It reflects the Government's shift in managing the program following the damning Humphry Review into IT outsourcing, which recommended individual departments manage their own outsourcing initiatives.

Previously, OASITO administered all federal outsourcing, but it has been replaced by the new Office of Asset Sales and Commercial Support (OASACS).

The new body will be responsible for the sale of Federal business assets and will assist agencies in market-testing new initiatives.

IT Opposition spokeswoman, Senator Kate Lundy, said the name change is the "lid on the coffin of a flawed program".

"This is about damage control, the Government is trying to distance itself from the program and OASITO has a bad reputation in government and industry," Senator Lundy said.

The Minister for Finance and Administration, John Fahey was unavailable for comment but a press statement from his office said the name change reflects the "devolvement of responsibility" by OASITO for the implementation of IT outsourcing.

Commenting on the budget generally, Senator Lundy said she was astounded by how devoid it was of IT&C funding initiatives.

"This is a catalytic economic sector that is critical to Australia's growth and it was ignored," she said.

Budget 2001-02 highlights by portfolio


- GSM licence fees increase for Optus, Telstra and Vodafone.

- $3 billion over five years for the innovation package.

- $163.1 million over four years to improve regional telecommunications.

- Sale of Telstra delayed until at least 2003-2004.


- Overall Budget spending of $12.44 billion for schools, training and higher education.

- Extra $238 million for government schools over four years.

- Nearly $200 million, largely over four years, in new and continuing transition from school to work programs.

- Additional 670 places at regional universities and campuses at a cost of $34.8 million over four years.

- Funding for Innovation Statement measures, including five-year $736 million for research grants, $583 million for university research infrastructure, $151 million for additional 21,000 university places and $995 million postgraduate loans scheme.

- $119 million over four years to help boost education and training opportunities for disabled people IT.

- Extension of Information Technology Online Program until 2006 through $13 million funding to accelerate the adoption of B2B e-commerce solutions in the business community- The creation of a world-class centre in ICT research to undertake R&D initiatives. Budget allocation of $129.5 million.

- Five-year Innovation Statement $2.9 billion.

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