Peter Sate, a managed services director who recently renewed a million dollar IT outsourcing contract with Telstra, said Australian businesses had become less inclined to opt for a “the whole outsourcing enchilada” since a federal enquiry last year found an AU$1.2 billion whole-of-government outsourcing project failed to deliver on promised benefits.
“With the press of federal government outsourcing, customers are being a bit more selective about what they want to do,” Sate said.
He said Australian corporations were typically opting for a “toe in the water” approach to IT outsourcing, rather than the “big bang” approach of recent years.
Australian corporations now tended to limit the business they conducted externally to the most vulnerable – and fastest evolving.
“Companies are recognising that their own people aren’t on top of all the tech changes,” he said.
Sate’s business, the Australian operation of Dutch technology firm Getronics, recently renewed an outsourcing contract with Telstra worth a paltry AUD$1 million over three years.
The deal will see Getronics Australia providing network support for the telco/ISP giant.
“All deals are good deals at the moment,” Sate said.
