Govt outsourcing strikes again

Govt outsourcing strikes again

The Department of Eduction, Employment and Training has added further fuel to the government outsourcing fire by releasing a request for tender covering all Victorian Government schools.

The Federal Government initially came under the blowtorch for its outsourcing arrangements, as the size of the tenders effectively precluded local companies from taking part in the tender process. Although the Government has significantly restructured its tender requirements, this latest offer could have disasterous repercussions for regional and rural resellers.

Tender number 01/02-11, covers the supply, implementation and support of 23,000 PCs across Victoria, currently sourced from local businesses. The tender also includes delivery and 3-year onsite warranty support.

According to Mildura-based business solutions consultant Jim Belbin, the deal will see the end of PC supply contracts, and rural and regional resellers ostracised from this important market.

"For resellers in the education market this will be a disaster," Belbin said. "Normal sales will almost certainly be drastically reduced as schools redirect the money they would have spent into other priorities."

Belbin also pointed out the crisis would be especially felt amongst regional resellers, as remote areas offer few alternative markets to resellers.

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