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Commonwealth ICT Procurement in The Digital Economy

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Ahead of the findings of the ICT Procurement Taskforce, we consider what a new approach to Commonwealth ICT procurement might look like and how contracting with ICT suppliers can evolve to support a new procurement and contract management landscape. Based on international developments and government activity, we anticipate that a new approach to Commonwealth ICT procurement could incorporate five key features.

Procurement in The Digital Economy

Corporate and government entities are maturing in their approach to digital transformation, moving away from the “quick wins” that shaped early digital efforts and embarking upon longer term business transformation programs.

Early digital transformation efforts took the customer experience online through the digitisation of forms, the improvement of user interfaces and the adaptation of purchasing and application processes. These changes accelerated the uptake of online service delivery, changed customer behaviour and drove early efficiencies. Behind the scenes, progress has been slower as organisations battle with ageing infrastructure and legacy business processes that fetter long-term, transformational change. Emboldened by shifting social norms, efficiency gains and soaring user expectations, organisations are taking a fresh look at their own shop, and seizing opportunities to drive efficiencies from within.

The Australian Government is as active as ever in its pursuit of “simpler, clearer, faster public services” (Australian Government Digital Transformation Office). In what may be an effort to drive efficiency from within, the Government has sent strong signals that ICT procurement will be next in line for a transformational shake-up. With an annual spend of around $5.6 billion (Australian Government Department of Finance, 2015), ICT procurement is both an ambitious and strategic target for transformational change.

This publication covers:

Recent developments in ICT procurement
Key features of a new approach
Feature 1: An interactive approach to buying and selling
Feature 2: Digital contracting
Feature 3: Contracting for modular development
Feature 4: Transparency plus
Feature 5: Accelerating SME participation