The Australian Tax Office says it will open its IT outsourcing contracts worth over AU$1 billion to multiple suppliers, ending its 10 year single-supplier arrangement with EDS.
The Australian Taxation Office (ATO) will not go ahead with an Accenture proposal to offshore a small amount of the development work for its AU$400-$450 million Change Program.
Government continues to shun colossal outsourcing contracts in favour of selective sourcing, while businesses display growing confidence in software-as-a-service -- however sustained skills shortages have plagued deployments, sparking interest in offshore options.
Australian Taxation Office officials have opted for homegrown software development to keep the Change Program on track, and have all but ruled out offshore labour.
Accenture has all but sealed a AU$100 million contract with the Australian Taxation Office (ATO) following changes to superannuation tax announced in the federal budget in May.
The Australian Taxation Office (ATO) may have opted against a recent proposal to offshore, but it still seems the writing is on the wall following May's federal budget.
The ATO's decision not to offshore software development is a much-needed reminder that despite the technical wizardry of remote/teleworking and the costs benefits of India, simple face-to-face communication can never be bettered.
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