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Sourcing & Staffing

While there is not as much activity as last month there are still a lot of interesting sourcing deals, both in government and private enterprise. Although small in number there are some interesting projects around, particularly for government bodies.

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A very busy month with a significant amount of material. A lot of deals have been done and there are a large number of projects under consideration. Additionally there are some interesting initiatives to be found in the other news section.

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A very exciting month! Not just lots of deals, but big ones too (mostly due to the NBN Co). No real tenders this month, but lots of project announcements in the Queensland Government budget in the wake of flood recovery

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Conclusion: Outsourcing remains a core service delivery model for a significant number of Australian firms. As outsourcing evolves to encompass cloud based services alongside traditional infrastructure outsourcing and managed services relationships, options for the CIO have increased rapidly.

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This month’s outsourcing highlights are especially interesting – there has been lots of activity in buying and selling outsourcing businesses and specialised business units. There have also been a lot of announcements about new service offerings, or expanded service offerings by vendors. You’ll see examples of this in the general news section, as well as an article that talks about BPO firms less likely to experience growth if they have a singular focus, and not several service streams, like IT services. All these things show the need for diversification in outsourcing service offerings, as well as streamlining, expanding and very targeted offerings in specialist industries (like health care, mining or cloud specific etc).

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Activity pretty ordinary this month with deals being pretty thin and sub-standard. We heard a couple of significant deals were going to be announced on the 29th but only one between IBM and NBN eventuated.

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Conclusion: More than almost any other factor in a CIO’s armoury, having good people within IT is a mainstay of continued success. Building good teams starts with staff selection. While some use search firms for senior roles, most CIOs use traditional recruitment methods: profile the role, advertise it, shortlist candidates, interview them, check references, then appoint. In difficult employment markets it is tempting to make staff selection compromises purely for the sake of filling a vacant role and relieving a stress-point.

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Conclusion: In 2011 Chinese based IT services providers will start to appear in the Australian IT marketplace. Clearly, their impact will be modest at first, although for certain organisations, there is the potential to benefit from engagement.

While they use Indian based firms as benchmarks, Chinese firms are significantly different from the Indian based services providers. Despite sharing the same offshoring based model, Chinese firms are more engineering focused and significantly less mature. You must be aware that engagement of Chinese providers will have specific engagement benefits and challenges.

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One of the most valuable IT professionals is the resilient project manager or program director. This is the person who can ‘jump tall buildings in one bound’, ‘walk over hot coals unaided’ and can deliver the solution or issue the tender while meeting OTUB (On Time Under Budget) requirements. (The role is gender neutral). Such is their value that astute CIOs ‘ring-fence’ these managers and stop them being seconded to projects outside their area.

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Conclusion: Organisations that receive competitive and insightful responses to their RFTs for products and services know they do not come their way by accident, but due to sound planning and conscientious execution of the bid process.

Conversely, organisations that rush the bid process and give potential suppliers little warning of the RFT’s availability and insufficient time to respond are likely to find fewer than expected responses, or even an empty tender box, on the closing day.

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In the News

New cyber security rules reset $8b cloud marketplace - Financial Review - 26 July 2020

Philip Nesci, IBRS adviser and former CIO, has warned that agencies will need to get their information management sorted out to capitalise on the new rules. ‘‘Agencies need to identify their...
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Australia can build a culture of employee-led innovation - DropEverything - 24 July 2020

IBRS advisor Dr. Joseph Sweeney discusses why it falls to individuals to look at improving their work in a post-COVID world. Dr. Sweeney comments on the need to build a culture of innovation that...
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Outdated work from home policies bog down Aussie businesses - Computer Reseller News - 6 April 2020

IBRS analyst Dr. Joseph Sweeney provides best practice-advice on working from home in the current pandemic situation. Dr. Joseph Sweeney discusses current working from home policies which are...
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Centrelink crashes under demand for crisis payments - Australian Financial Review - 23 march 2020

IBRS workforce transformation advisor Joseph Sweeney said many government departments had to navigate difficult IT environments that were only part-way through their digital transformations, with...
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Inside EY's security work at ANZ - Australian Financial Review - 3 March 2020

"There is more security work to go round than there are resources. So I don't think the market is that crowded. It's important to remember that security is not something you buy and then it's done;...
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