Independent research from IBRS reveals a troubling link between the heavy involvement of Tier 1 consulting firms and the failure of Australian public sector IT transformations. After analysing 23 major projects, the study found that using large consultancies for strategy and program management consistently correlated with budget overruns, timeline extensions, and higher risk profiles. IBRS highlighted a fundamental “clash” between the heavyweight frameworks favoured by these firms and the agility required for modern SaaS (Software-as-a-Service) implementations. Furthermore, the report warned that outsourcing strategy strips agencies of the internal ownership necessary to drive essential business process changes, often leaving them unable to manage the very systems their operations depend on.
A Call for Internal Capability and Accountability
The broader report, Fast Tracking Economic Advantage from Core Solution Upgrades, commissioned by TechnologyOne, advocates for a significant shift in government procurement and governance toward internal capability and direct vendor partnerships. Evidence suggests that projects yield better outcomes when agencies maintain primary accountability and utilise smaller, specialist consultants only for discrete tasks. In the article, Big consultancies linked to failing public IT projects, TechnologyOne CEO Ed Chung echoed these findings, criticising the “mystique” of the Big 4 and labelling them “false prophets” of risk management. As Australian governments face increasing scrutiny over public sector reform, the research underscores a critical turning point: successful modernisation in 2026 relies on reclaiming project leadership from overseas consulting giants to ensure long-term accountability and operational stability.
