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Chapter 1: Views from within the Australian Government

  1. ICT Investment Decision Making
  2. Project delivery
  3. Organisational capability
  4. People
  5. Managing ICT spend
  6. Procurement and ICT Outsourcing
  7. Use of best practice
  8. Views on existing whole-of-government arrangements
  9. Views on data centres
  10. Views on the ICT industry
  11. ICT arrangements in Ministerial Offices

This chapter summarises the key themes raised in submissions from Australian Government agencies and in 24 bilateral meetings with agencies. A total of 41 Financial Management and Accountability Act 1997 (FMA Act) agencies were invited to make submissions to the review. They were asked a series of questions about:

A total of 40 agency submissions were received and reviewed. Four agencies – the Department of the Prime Minister and Cabinet (PM&C), the Australian National Audit Office (ANAO), the Department of Finance and Deregulation (Finance) and the Department of the Treasury (Treasury) – were asked specific questions related to their respective oversight/governance roles. Accordingly, percentages raised in this chapter do not include consideration of PM&C and the ANAO, but do include Finance and Treasury, as they also provided responses on their ICT operations. Appendix D contains a full list of the agencies that made a submission to the review.

1.1 ICT Investment Decision Making

1.1.1 Prioritising investments

Thirty-five agencies detailed formal processes for prioritising ICT investment at the organisational level, with only three agencies not providing any details. Priorities are set through governance arrangements (35 agencies), combined in some instances with business case processes (10 agencies) or budget management processes (6 agencies).

Nineteen of these 35 agencies were able to detail reasonably comprehensive prioritisation techniques or extensive assessment criteria to rank competing investments, with six agencies actively grouping investments into priority groups. However, the other 16 agencies were only able to detail basic prioritisation processes and criteria.

Agencies cited the following criteria used when ranking competing investment priorities:

1.1.2 Alignment of ICT investments with strategic priorities

The review observed that there are very few frameworks in place at the whole-of-government level for setting priorities for ICT investment across portfolios. There is no formal process by which agencies can obtain information on ICT activities in other agencies before investing in ICT. It was also noted that the technical capacity of the three central agencies (Finance, PM&C and Treasury) to assess and advise on ICT investment proposals is at full stretch during the budget cycle. This results in feedback on individual proposals, rather than taking a whole-of-government approach to investment.

Furthermore, a longstanding feature noted by several agency heads was that investment in ICT to support policy delivery has, in some instances, not been considered before announcing policies. Policy makers and Ministers are not always fully aware that inadequate consideration of delivery implications at the outset can have significant adverse implications on the cost of policy delivery. There was some limited evidence of best practice, where those responsible for delivery were deeply involved in the policy formulation process.

At the organisational level, 32 agencies (82%) noted that they ensure alignment of ICT investments to strategic priorities through formal planning processes and governance mechanisms. Agency strategic priorities include:

Agencies reported that alignment is facilitated through the influence of senior ICT executives in agency-wide governance arrangements. However, in only a few cases did agencies indicate that the Chief Information Officer (CIO) is a member of the executive team. Only two agencies reported that their ICT governance structures are underpinned by AS 8015-2005 Corporate Governance of ICT. An additional two agencies either referenced the standard in their submissions, or stated that they plan to use it in the future.

1.1.3 Future importance of ICT to government business

Across the board, agencies reported that ICT is a fundamental business enabler and an integral part of their operations. There was also a unanimous view that ICT will continue to increase in importance. In particular, agencies commented on the increasing need for more robust and agile systems to:

Nineteen agencies said that they expect the demand for online transactional interactions to continue to increase, with the safeguarding of citizens’ information an important consideration.

Improving the level of collaboration and information sharing between agencies and other external organisations (for example, the trade and investment community, agencies with strong international links such as policing and patents) is an imperative (and a challenge) for 15 agencies.

1.2 Project delivery

There are several whole-of-government initiatives that examine and report on the delivery of major government investment projects and programs, including ICT-enabled projects. These are the Gateway Reviews, ANAO audit activities, and the PM&C Cabinet Implementation Unit's Traffic Light Reports.

Gateway Reviews assist FMA Act agencies to improve the likelihood of successful delivery of projects on-time, on-budget and with the intended benefits realised. However, I heard one view that Gateway Review recommendations have in some cases not been adopted.

The ANAO submission highlighted that its audits of ICT-enabled projects identified areas for further improving the management and use of ICT. These include ensuring business cases include measures of both project success and standardised costing methods.

Most agency responses on how they measure whether their ICT investments were meeting their planned outcomes focused only on new ICT-enabled projects, rather than on investment in existing business as usual activities. Responses revealed that most agencies have formal processes in place for new projects, such as a project management frameworks or governance mechanisms.

1.2.1 Use of project management frameworks

Most agencies use some form of project management methodology to manage their ICT projects. Twenty-two agencies (59%) use the PRINCE2™ methodology as the basis of their project management methodology, with a further two agencies planning to introduce PRINCE2™ in the near future. Additionally, five agencies use the Project Management Body of Knowledge (PMBOK®) to underpin their project management methodologies (four agencies are using PMBOK® in tandem with PRINCE2™), while another two agencies plan to adopt PMBOK®.

1.2.2 Use of governance mechanisms

Five agencies cited their involvement in Gateway Reviews as a governance mechanism for project delivery. One agency cited the use of a cross-agency project board, while 15 agencies discussed their use of internal project boards. Ten agencies noted that their projects received senior management endorsement.

1.2.3 Risk management

Twenty-two agencies indicated that their risk management frameworks were compliant, consistent with, or based on AS/NZS 4360:2004Risk Management.

Nine agencies noted that their audit committees were responsible for overseeing risk management within the agency. Four agencies have centralised oversight of risk management within the organisation through enterprise risk registers to manage agency-wide risks.

Agencies have taken different approaches to embedding risk management within their operations, including incorporating risk management within their Chief Executive Instructions, integrating risk management within their business planning and project management, applying project management methodologies such as PRINCE2™, and designating an agency risk manager.

1.2.4 Benefits realisation plans

Twenty agencies reported some form of evaluation of benefits at the end of the project compared to those identified in the project initiation documents. Eight agencies reported that they are preparing to introduce formal benefits realisation evaluation processes, while five agencies noted that they track benefits, but did not offer evidence of a formal dedicated process. Two agencies did not discuss benefits realisation.

1.2.5 Evidence from recent ICT projects

Agencies were asked to provide details of their 5–10 major ICT-enabled projects and how they measured their success in terms of cost, time, specification and delivery of anticipated benefits. Agencies provided details of 193 completed projects. Table 1.1 details observations made regarding the performance of these projects.

Table 1.1 – Performance of 193 completed projects

COST

TIME

BENEFITS ACHIEVEMENT

23% (45) were delivered over budget

39% (74) were delivered under budget

13% (25) had no variance between estimated cost and actual cost

25% (49) were silent on the question

33% (64) were delivered over time

2% (3) were delivered before time

41% (80) had no variance between estimated time and actual time to delivery

24% (46) were silent on the question

44% (86) reported achievement of benefits but did not provide evidence of measurement

Only 5% (10) reported actual measurement of benefits and compared anticipated benefits with actual benefits realised

45% (86) reported outcomes that were not measurable

6% (11) were silent on the question

Thirty-four of the 193 projects recorded expenditure of more than $5 million. Table 1.2 details observations made regarding the performance of these larger projects.

Table 1.2 – Performance of projects over $5 million

COST

TIME

BENEFITS ACHIEVEMENT

12% (4) were delivered over budget

29% (10) were delivered under budget

9% (3) had no variance between estimated cost and actual cost

50% (17) were silent on the question

12% (4) were delivered over time

No projects were delivered under time

38% (13) had no variance between estimated time and actual time to delivery

50% (17) were silent on the question

36% (12) reported achievement of benefits but did not provide evidence of measurement

11% (4) reported actual measurement of benefits and compared anticipated benefits with actual benefits realised

38% (13) reported achieving actual outcomes that were not measurable

15% (5) were silent on the question

1.3 Organisational capability

The review asked agencies to provide details of how the capability of their organisation to commission, manage and deliver successful ICT-enabled programs is measured. It also asked agencies to provide an assessment of their current capability, and any plans to improve it.

1.3.1 Current assessment of capability

In responding to this question, only three agencies provided an assessment of their organisation’s overall capability, with the remaining agencies interpreting the question solely as ICT capability, after being given an opportunity to reconsider their response. Six agencies provided a high assessment of their ICT capabilities, while 15 agencies stated that their ICT capabilities were medium and eight said they were low. The remaining agencies offered no assessment of capability. In the absence of a common capability framework, agencies used a range of partial measures to make these assessments.

1.3.2 Measurements of capability

Seventeen agencies measured their capability by whether ICT had been able to deliver against the business requirements in a timely manner. Twenty-five agencies cited their strong project management capabilities as evidence of their strong capabilities, while five pointed to staff and user satisfaction surveys as an indicator of their capability.

There is some use by agencies of formal assessment frameworks to assess capability. Seven agencies have used the Software Engineering Institute’s Capability Maturity Model Integration (CMMI®) to assess capability and a further agency plans to use CMMI®, but these have mainly been informal internal assessments.

A total of 11 agencies reported using the IT Governance Institute’s Control Objectives for Information and Related Technology (COBIT®) maturity models, which provide a management tool enabling benchmarking and targeting of maturity levels.

Eighteen agencies reported using Information Technology Infrastructure Library (ITIL®), while a further four agencies reported that they are planning to adopt it. Only one agency noted that it had undertaken an ITIL® Process Maturity Assessment, conducted by an external provider.

One agency observed that there is no evidence that current investment approval processes include any rigorous and objective methodology for assessing the organisational capability of an agency seeking funding for ICT-enabled projects during the budget process. Equally, there is no assessment of the likelihood of delivering project outcomes.

1.4 People

Twelve agencies commented on the adverse impact of ICT skills shortages, both in submissions and during bilateral meetings. There is general agreement among these agencies that ICT skills shortages are widespread, and that an agency's ability to attract and retain highly skilled and motivated people has a significant impact on both efficiency and effectiveness, although five agencies observed that they are not experiencing current pressure from shortages.

Those agencies that reported an adverse impact of the skills shortages discussed it in terms of its effect on agency capability. Some agencies noted that both BAU and project-related activity were at risk. One agency also noted that its suppliers were constrained in their ability to service contracts, as a result of the skills shortage. The impact of competition between agencies for scarce skills on contractor costs was also commented upon.

Agencies are turning to a mix of solutions to cope with skills shortages. These include:

1.5 Managing ICT spend

Agencies were asked how they ensured that their ICT spend (both operating and capital) is as efficient and effective as possible, and to provide details of the performance metrics used to measure the efficiency and effectiveness of their ICT function.

1.5.1 Measures of efficiency

Very few agencies said that they used metrics to assess the efficiency of their ICT spend. Only two agencies regularly reported efficiency metrics and targets to their senior executive. A further two agencies said that they used efficiency metrics annually, while seven reported that they undertake efficiency benchmarking on an ad hoc basis using contracted service providers. Four agencies are developing efficiency measurement metrics or are implementing activity-based costing to understand their ICT costs. There was some evidence of multiple instances of taxpayers’ money being spent to obtain benchmark data in areas such as desktops.

1.5.2 Measures of effectiveness

Twenty-six agencies reported that they employ metrics to manage the effectiveness of their ICT operation, such as availability, outage reporting, number of client application service requests completed, and customer satisfaction surveys. A further two manage the effectiveness of their ICT service providers through the use of operational metrics.

1.5.3 Other mechanisms to measure efficiency and effectiveness

Of the remaining agencies, nine reported using qualitative rather than quantitative efficiency and effectiveness measures, including:

These measures were also used by agencies that did report using quantitative metrics. Two agencies did not report using any methods to manage their ICT spend.

1.5.4 Future plans to increase efficiency and effectiveness of ICT spend

In addition to those agencies already using techniques such as the following, other agencies reported future plans to increase the efficiency and effectiveness of ICT spend by:

1.6 Procurement and ICT Outsourcing

Although not explicitly mentioned in the invitation to agencies to make a submission to the review, many agencies had points of view on procurement and ICT outsourcing and their relevance to effectiveness and efficiency.

1.6.1 $80,000 tender threshold

Five agencies discussed the difficulties arising from the Commonwealth Procurement Guidelines requirement for an open tender for any ICT acquisition estimated to cost more than $80,000. This issue was also raised at a meeting of the Chief Information Officers Forum which I attended.

1.6.2 Common-use contracts and supplier panel arrangements

Nine agencies saw merit in greater use of common-use contracts and supplier panel arrangements developed by a central body in areas of generic need or use. There was recognition that volume sourcing arrangements currently under development could service this need. A few agencies supported common approaches to benchmarking.

Two agencies stated that such a wholly centralised procurement function is likely to add a significant bureaucratic overhead that would not be justified by efficiencies. Four agencies said that any move to centre-led procurement must ensure that agencies are not hindered in achieving their specific business outcomes.

1.6.3 ICT outsourcing

Agencies use a mix of insourced and outsourced arrangements. Some agencies are moving to renew their outsourced delivery arrangements, while others have never outsourced and always retained an insourced ICT capability. Other agencies are moving back from outsourced to insourced arrangements, and others have a mix of insourced and outsourced arrangements but not as part of a cluster arrangement. This cluster arrangement, required under the Information Technology Infrastructure Consolidation and Outsourcing Initiative commencing in 1997, attracted criticism from three smaller agencies. They found that their needs are not being catered for as outsourced providers dedicate most attention to the needs of larger agencies in the cluster.

At meetings with agency heads, I heard that the outsourcing initiative was handled too directionally by a central authority and that the arrangements adversely impacted upon agencies’ ability to function efficiently and effectively. There was much criticism of the initiative, with agencies complaining of the long-term implications. For example, one agency said that it was now moving from outsourced to insourced services, with the main driver being reduced costs. Another agency stated that its expectations for service delivery were not met by their outsourced service provider. Concern was expressed by agency heads that the clustering of agencies was random and there was little business alignment in the clusters.

In December 2000, a report on the Review of the Whole-of-Government Information Technology Outsourcing Initiative (the Humphry Report) was considered by the Government. The Government agreed with the recommendation which saw future responsibility for implementing the outsourcing initiative fully devolved to agency Chief Executives or Boards.12

1.7 Use of best practice

During the course of the review I sought to determine the extent to which Australian Government agencies were engaged in better practice and best practice. Examples were sought from agency submissions, bilateral consultations and through wider investigations. In my view, there are a number of better and best practice examples across government which could be more widely adopted. While there is broad awareness of a few well-known examples, these tend to be the exception. There is no systematic means to promulgate best practice more widely and, as a result, there is only limited awareness by other agencies of most of these initiatives. There is clearly potential to leverage these examples by publicising them more effectively. An illustrative selection of examples is included below.

1.7.1 SmartForms

The Department of Innovation, Industry, Science and Research has developed a centre of excellence in SmartForms. SmartForms are a platform to deliver advanced online forms and services across government. They enable the Government to provide more information and services online to the business community and enable companies to complete their regulatory and reporting requirements more efficiently. There are currently over 650 live SmartForms available on the site, resulting in shared forms, templates, infrastructure and knowledge across multiple government agencies, including Centrelink and Finance, and several state governments. This whole-of-government solution has been available since November 2005 to government agencies that own business-related forms.

1.7.2 Architecture-based design

Centrelink’s system of online claims and services for customers provides a facility through which customers can view and update a range of personal data over the internet. Customers can access information, correct inaccurate information, lodge claims and manage their Centrelink affairs. Centrelink is employing a new service oriented architecture to make functions and data contained in its mainframe-based legacy applications available to applications using web services. This allows information to be collected from citizens with little or no intervention from Centrelink staff. Online services are now being developed using industry standard technology, providing an increasing opportunity to deliver services that cross traditional system and agency boundaries. Centrelink has found that re-use of systems and functionality is delivering cost-efficiencies, reducing development time, and providing standardised, consistent services and user interfaces to customers. Online services under development will re-use existing web services to leverage previous investment in ICT.

1.7.3 Project maturity assessments

The Defence Materiel Organisation has implemented a technique which assesses the maturity of projects as they progress from concept to in-service. Projects are assessed against the criteria of schedule, cost, realisation of requirement, understanding of the technical solution and arrangements to operate and support the capability, technical difficulty, industry performance issues, and operations and support.

1.7.4 Secure communications

FedLink is a whole-of-government encryption system that allows data classified up to and including PROTECTED and RESTRICTED to be transferred securely among Australian Government agencies across the internet or any insecure infrastructure. Since establishment in 2001, FedLink has expanded to provide services for 98 Australian Government agencies (52% of all FMA Act and Commonwealth Authorities and Companies Act 1997 agencies).

The initiative operates under a head agreement between Finance and the FedLink service provider. Individual agency contracts are between the agency and the service provider. FedLink is implemented as a user-pays funding model and is cost-efficient in comparison to similar commercial offerings. Over the past 7 years in operation, FedLink has proved to be a robust and effective service with minimal impact on the agency or end user.

1.7.5 Sourcing strategies

Some agencies are specifying outcomes rather than technical specifications as the basis of competitive tendering. The Department of Foreign Affairs and Trade states this approach has identified that commercial off-the-shelf products can meet the needs of the business without bespoking.

Several agencies nominated specific instances of their ICT sourcing as best practice. These included a ‘best of breed’ policy (Australian Electoral Commission); a hybrid sourcing model (Department of Infrastructure, Transport, Regional Development and Local Government); multi-party arrangements (Australian Customs Service); and leveraging of cross-portfolio arrangements (Department of Human Services).

1.7.6 Collaboration with industry

The Australian Taxation Office (ATO) has a Software Industry Liaison Unit which was established to assist tax-related software developers with changes that came about during one of Australia’s major tax reforms. The ATO has continued to collaborate closely with software developers to improve and streamline their interactions with ATO systems. For example, the unit makes available all tax-related information required by software developers to readily interface their systems to the ATO.

1.7.7 ICT management frameworks

As noted in section 1.3.2, 18 agencies are using ITIL® and a further four are planning to implement it. Of these agencies, eight are sufficiently confident in its use to nominate it as a best practice framework for promulgation across government. ITIL® practices are commonly implemented in areas of problem management, incident management, change management and configuration management.

Likewise, there are 11 agencies currently using the IT Governance Institute’s COBIT® as a management tool, enabling benchmarking and targeting of maturity levels. Four agencies suggested government-wide use of COBIT®.

1.7.8 Earned Value management

Earned Value is a set of best practice project management techniques that integrate cost, schedule and technical performance. Earned Value establishes objective measures of the actual work achieved compared to the plan for that work. It requires better up-front planning and provides an agency and its contractor with the same performance data against which project progress can be managed and reviewed.

The ATO has realised greater transparency of the status of its Change Program by employing Simplified Earned Value methodology and fixed price milestone payments for its contract for services with Accenture. Simplified Earned Value provides a payment method where the dollar amount claimed by the provider relates to the amount of work performed. Warranty, stage gate and risk-reward payments remain fixed price, with specific point-in-time triggers and milestone achievement criteria. Invoices are received monthly for the previous month’s work effort.

The Defence Materiel Organisation also uses a mix of Earned Value and project milestones to manage projects. It uses the technique in larger, more complex projects (usually at least $20million and with system integration involved).

1.7.9 Knowledge management

The Australian Bureau of Statistics (ABS) Knowledge Management Environment delivers ongoing information productivity through provision of an enabling desktop IT environment, which facilitates collaboration and allows the information produced to be managed as a corporate asset. The platform integrates portal, collaboration, mail, workflow, offline capabilities, document management and record keeping, and supports the organisational objectives. This includes the creation, production, publication and distribution of information, including the ‘automated’ delivery of publications and content to the ABS website.

1.7.10 Energy efficiency in data centres

The Treasury reported that it had invested in a new data centre with a conscious effort to reduce its carbon footprint by re-using the cold air in Canberra for the centre’s cooling requirements.

1.7.11 Search

The Agency Search Service allows agencies to leverage the whole-of-government search service provided through australia.gov.au, to provide a search on agency websites. Thirty-two agencies have fully implemented the use of this service over 57 websites. Agencies using the search service include the Bureau of Meteorology, Medicare Australia, the Department of Health and Ageing and Finance.

1.7.12 Successful delivery of technology refresh

Centrelink’s IT Refresh program has increased the range of services that Centrelink’s customers are now able to access online. According to an audit by the ANAO13, it significantly advanced online services for private sector organisations, enabling them to verify customer circumstances and to exchange information; reduced the risk of service compromise or failure due to the ageing of its systems; and established an Enterprise Data Warehouse that will provide the capability to substantially improve its management information. Over the five years of the Refresh program, Centrelink committed to achieving savings in administered payments (such as benefit and pension payments) of $184 million, and savings in departmental expenses of $120.9 million. Centrelink achieved the committed budgetary savings.

1.7.13 Customer-focused service delivery

The ATO e-tax service is a free tax return preparation software that ensures most refunds are issued in 14 days. e-tax helps citizens prepare their income tax return and baby bonus claim, and then lodge online. It also lets citizens download their Medicare benefit tax statement details. e-tax was first introduced in 1999 for the 1998–99 financial year.

The ABS e-Census facility is a tool that provides all Australians with a robust, secure and easy alternative to completing the paper Census form, and makes it easier for the ABS to count people living in isolated places. Importantly, it is also accessible for people with a disability as it uses assistive technologies.

1.7.14 Green ICT

The Department of Defence (Defence) implemented a Green ICT initiative in June 2008. By enforcing automatic log-off and then automatic shut-down on its major PC fleet, the number of machines left powered on after hours fell from 50,000 to 3,000. Electricity savings from this initiative are expected to exceed $5 million annually. The equivalent cut in greenhouse gas emissions is expected to exceed 30,000 tonnes annually – the equivalent of taking 7,500 cars off the road permanently.

1.8 Views on existing whole-of-government arrangements

Agencies were asked for their views on existing whole-of-government arrangements to guide the Government’s use and management of ICT. Several frameworks, guides, strategies and policies already exist within the whole-of-government environment, and agencies were asked to indicate their level of use of these frameworks, and any issues that impeded use.

1.8.1 Current governance mechanisms

A very small pool of agencies commented on the current governance mechanisms, mainly agencies that are involved in the relevant committees. Comments were made on an individual agency basis.

Agencies reported that the Secretaries’ Committee on ICT (SCICT) provides only limited guidance. One agency said that the forum struggles to deliver value on collaboration and is struggling to determine its level of interaction with agencies. The agency said that the SCICT has no authority to be critical and failed to affect decisions coming out of the Budget process. One of the SCICT members said that they expected that the forum would share learnings, but this did not happen. Instead, the forum acted as a ‘sand trap’, slowing down initiatives from agencies. PM&C said that the Government needs to review the SCICT’s terms of reference and modus operandi. One agency suggested that the SCICT could provide value by providing a line of sight for whole-of-government programs to politicians.

Agencies reported that other forums, such as the CIO Committee and the Business Process Transformation Committee, are useful for sharing ideas, although one agency commented that these committees tend to share issues rather than solve them.

1.8.2 Views on AGIMO

Comments were offered by agencies on an individual basis.

One agency noted that, while the aspiration behind the Australian Government Information Management Office (AGIMO) was good, AGIMO has been around for some time and there is still no evident return on investment. Another agency noted that AGIMO has no authority over agencies and that this was a significant issue. One agency noted that AGIMO’s role might be better placed in another part of government, such as within the PM&C Cabinet Implementation Unit, as its role within Finance was problematic because Finance’s role is to reduce expenditure.

Agencies felt that AGIMO does have a role to play in terms of leading and facilitating work on architecture, frameworks and standards. There was support for existing central frameworks, standards, best practice guides and services such as:

1.8.3 Barriers to adoption

Agencies were asked why they did not adopt whole-of-government policies.

Seven agencies, in different ways, expressed a view that agencies needed to remain autonomous due to either the unique requirements of their business, or because they could drive a better pricing deal as a single entity.

Four agencies highlighted the lack of common standards and a common language as inhibiting whole-of-government approaches.

Another four agencies observed that it is difficult to deploy AGIMO frameworks and guidance as the Government does not provide any extra funding to enable agencies to adopt these policies.

1.8.4 Future coordination

Nine agencies stated that they saw value in some form of strong central leadership and authority to coordinate whole-of-government arrangements in certain areas, for example, architecture and business process design. Five agencies noted that any frameworks and guidance introduced under such arrangements would need to be backed by a strong business case, or opt-in provisions.

Seven agencies expressed concern over any trend to centralise ICT decision making that could not accommodate unique requirements of in-house and collaborative applications development, due to the highly specialised nature of agency purchases. These agencies felt that the possible imposition of a whole-of-government initiative could affect an agency’s ability to operate efficiently and effectively.

1.9 Views on data centres

During a number of agency bilateral meetings, the issue of inadequate current data centre arrangements arose. Key points raised included:

A subsequent survey was undertaken with the 16 largest agencies (excluding Defence) to help inform and quantify the magnitude of the data centre issue. Table 1.3 contains a high level summary of findings. In addition, 12 of the agencies identified having more than one of their data centres in the ACT

Table 1.3 – Summary of data centre locations of the 16 largest agencies (excluding Defence)

Agency self-managed facility within ACT

14

Shared facility within ACT

17

Total data centres located in ACT

31

Agency self managed facility outside of the ACT

 8 (7 of these belong to the ABS)

Shared facility outside of ACT

6

Total data centres outside of ACT

14

Total data centres

45

This survey also identified the following:

1.10 Views on the ICT industry

During the bilateral meetings, a number of agencies expressed concerns about the ICT industry based on their experiences. These included:

1.11 ICT arrangements in Ministerial Offices

During the course of the review, I was made aware of an issue affecting interoperability of ICT systems within ministerial offices at Parliament House, Canberra. This issue serves as a reminder of the importance of interoperability, common systems, and the problems that can result from an autonomous approach to ICT systems. The issue is outside the Terms of Reference for my review, but the concerns were passed onto Finance, which has some responsibility for providing services to Ministers.

Next section: Chapter 2: Views from outside the Australian Government

Footnotes:

  1. It is recognised that many more agencies have ICT capability in other locations outside of Canberra due to their headquarters being located in non-Canberra locations, and other business reasons. However, as reported in 3.2.3, 79% of ICT staff are located in the Australian Capital Territory (ACT).
  2. Humphry, Richard AO (December 2000), Review of the Whole-of-Government Information Technology Outsourcing Initiative.
  3. Audit No. 17, 2007-08, ‘Management of the IT Refresh Program’.
  4. There are two feeds from New South Wales to the single ACT electricity grid. One feed provides 85% of electricity to the ACT and the other 15%. The smaller 15% feed is only to the immediate Fyshwick area and is insufficient to support agency needs. Agencies with data centres in Canberra are therefore susceptible to the single ACT power feed.
  5. See http://uptimeinstitute.org/wp_pdf/(TUI3026E)TierClassificationsDefineSiteInfrastructure.pdf

Contact for information on this page: ICTReview@finance.gov.au

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Last Modified: 11 February, 2009