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Tech outsourcing push tipped under Coalition

Tech outsourcing push tipped under Coalition

21 May 2013 | The Australian Financial Review

Indian technology giants are bulking up on government sector expertise ahead of an expected Coalition victory in the September federal election, with the belief that a Coalition government will adopt an aggressive approach to sending public sector work offshore as part of a search for savings.

Mohit Sharma, Director of Sydney-based outsourcing specialist Mindfields, said his research showed the Australian government was spending comparatively more on technology than the US and British governments because of a less mature approach to outsourcing.He said Australian politicians have been uneasy about allowing departments to source work from outside a comfort zone of local or US-based suppliers. Based on Mindfields’ modelling he expected the percentage of spending on outsourcing to increase to 35 per cent by 2013-14, due to the inclusion of largely Indian-based offshore vendors.

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