EDS appears to have jumped the final hurdle, knocking Hewlett-Packard out of the race for one of the juiciest South Australian government outsourcing contracts, distributed computing support services.
Ten years of outsourcing have left the South Australian government with a shortage in skilled technology workers and at "the mercy of the market", according to the man behind its AU$250 million infrastructure procurement program.
The computer services industry in Australia faces uncertain times, with the further transfer of labour-intensive activities to "highly skilled cheaper labour countries" and government reaction to "cost or service promises not being met" potentially undermining growth, an analyst claims.
Opposition IT Minister Senator Kate Lundy has accused the Howard government of leaving small and medium-sized IT enterprises out in the cold in favour of the big end of town.
The push towards outsourcing all of the Federal Government's IT&T requirements has taken another step forward with the announcement of the preferred tenderer for the 'Group 5' contract. The winner is Advantra, a joint venture between Telstra, IBM and Lend Lease.
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