From the inside: IT outsourcing and strategy in govt.

Once a system has been outsourced, what is there left to do internally? Plenty of strategy according to Faye Powell, whose appointment eight months ago ushered in a new era in terms of the way government departments relate to their IT service providers.

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It might not often be in the forefront of your mind, but without the infrastructure managed by department of transport and regional services (DOTARS), most commerce in Australia would come to a screeching halt.

After all, in order to be sold--either here or elsewhere, goods need to be moved, and DOTARS manages the infrastructure which keeps that whole process ticking over.

In turn Faye Powell, general manager Information Services Group, is charged with keeping DOTARS ticking over, from the tiniest byte of data, to the functionality of the departmental Web site.

Given that DOTARS deals with over three thousand million dollars a year in appropriations and manages to run at a surplus of around AU$22 million, Powell's task is similar in size and scope to many in the private sector.

-There is, of course, always an added burden of accountability, because you are often dealing with public monies," Powell explains. -But in reality it is no more than should be expected at a properly run company in the private sector."

And Powell should know, coming into the positionsafter a four and a half year stint with IT outsourcer and systems integrator, Unisys.

-A lot of outsourcers really don't understand the true business of government, and conversely a lot of people within the departments don't understand commercial drivers, so it is useful to have sat on both sides of the fence," she says.

With the department's hardware and software requirements fully outsourced to Telstra Business Solutions, Powell's main focus is on driving the strategy behind the IT infrastructure.

-I only focus on specify business outcomes, we don't do any of the purchasing, or specify any of the solutions," Powell says. -We tell them what we want to achieve, then assess their performance on their ability to achieve it."

However, when it comes to the strategy, Powell very presence is a sign of the department's desire to stay in control.

-About eight months ago we began to implement a strategic IT plan," Powell said. -Basically it consists of rigidly defined goals, including back-end integration, improved online services and knowledge management."

Having worked in an environment where knowledge management was well established, Powell is already hankering for the sorts of flexibility and improvements in productivity it promises.

-We are looking for the ability to share information across different users," Powell said. -We are also working closely with Telstra to improve our online services and e-commerce."

While Powell concedes most of the goals involve midrange applications of some kind, she is not about to tell Telstra how to do its job.

Most recently, Telstra expanded DOTARS' use of the Parliamentary Information Management System (PIMS) and Electronic Document Management System (EDMS), used across 1000 seats within the organisation. Created locally by ASX-listed Objective Corporation, the EDMS will further enable DOTARS to manage unstructured information produced through the department's operations.

While she says she is entirely happy with the choice of software, Powell points out that her focus is outcome--rather than product--based.

-We don't dictate purchasing requirements to our outsourcing partners, however a knowledge management is certainly one of our key objectives," she said.

Not being a transactional department, DOTARS has only a limited requirement for e-commerce services, however, Powell signalled her interest in using the Internet to deliver departmental publications and tenders.

While the strategy-focussed, hands-off approach taken by Powell has only been in place since June last year, she is confident the approach will work.

-We go through an exhaustive process to specify our requirements, then give our strategy over to Telstra to fulfil it," Powell said. -Of course we are generally aware of improvements in technology and how we might be able to take advantage of it, however our requirements have to do with the efficiency of the way we operate rather than what technology is required."

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