Govt IT procurement faces delays as COVID-19 hits supplies

Govt IT procurement faces delays as COVID-19 hits supplies

Agencies urged to “factor in” virus in procurement cycles

Credit: ID 55578362 © Victor Diola Jr | Dreamstime

The Australian Government has warned of delays to supplies for IT procurement as the rise of as COVID-19 hits international supply chains.

The Digital Transformation Agency (DTA) has advised government agencies to factor in product shortages and delays following the virus outbreak in China, the world’s biggest exporter of IT equipment.

“The DTA has been informed that there may be interruptions to manufacturing of hardware products, with closures of factories and suspension of cargo movements due to the impact of the coronavirus,” a spokesperson said in a statement.

“This means there may be a shortage in products and delays until new products are shipped. Agencies are advised to factor this into procurement cycles,” the spokesperson added.

IDC has already warned of a potential nine per cent decline to shipments of desktops, notebooks, workstations and tablets this year, partly due to the virus.

China has started showing signs of recovery within its manufacturing industry, with IDC analyst Linn Huang said the country could expect a “slow trickle of labour back to factories in impacted provinces until May”.

However, as the virus continues to spread in South Korea, Samsung Electronics and LG Innotek have been forced to shut factories after a worker tested positive for the disease.

The New Zealand Government has also asked agencies to limit their demand for IT hardware to urgent and planned activity.

The Procurement and Property division warned agencies in February and this week told Reseller News it was continuing to monitor the impact of the coronavirus outbreak on supply, particularly in relation to IT hardware.

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