Industries get the losing end after Australian elections

By Kevin Noonan | Nov 26, 2010

 The Australian elections this year has been one of the tightest in the country's history, but the real test will be witnessed after the elections, if the winning candidates would be able to deliver on their promises, including in the IT aspects of governance.

Big challenges for the IT industry
Like everyone else within or working with the government sector, the IT industry will need to prepare for an era of frugality. Most of these cuts will be focused on back-office activities (with both parties claiming minimal impact on front-line services).

On the back of the already substantial savings that were demanded by the Gershon review, demand will be more limited to innovative ways of delivering services with IT. Offerings including shared services, outsourcing, virtualization/data center consolidation, and flexible licensing and delivery models such as software-as-a-service (SaaS) will be options that will be discussed in great detail.

There are some glimmers of hope, such as the National Broadband Network and e-health initiatives (should Labor retain its governorship) and the A$120 million of special funding for IT for schools on offer by the coalition (a more “community-based” solution). However, without greater clarity, we are unable to see anything more than the IT industry (within the government sector anyway) being an election loser.

Public servants won’t escape some pain
Future directions within the public service itself are likely to be driven by the objectives of cost savings and policy risk management.

High-profile policy failures such as the Home Insulation Program have drawn hot criticism throughout the election period. In any future government, both parties will not have the luxury of surviving any significant problems with policy delivery. This can present quite a burden for IT managers, as IT system delivery is frequently at the pointy end of new policy initiatives. The key message for the next three years will be to step carefully, and to diligently stay on top of all risk management.