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Conclusion: The rise in the Australian Dollar is encouraging many organisations to investigate using IT and business process service providers outside the country as a means of reducing their cost base. There is no doubt that ongoing savings are possible, but they will only be sustained if the risks are managed and IT professionals responsible for outcomes are diligent and track performance.

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Conclusion:All contracts eventually terminate, however the reasons for the termination and the way the termination is handled can lead to different outcomes. To minimise the risks associated with contract termination it is essential that the buying organisation gives due consideration to this event while in the early stages of the procurement cycle. Unless the procurement contract is drafted to cover the issues that can arise as a result of termination, the buying organisation can be faced with significant business disruption, financial penalties and potentially even legal action.

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There have been a lot of little deals in outsourcing, the SMB market is active, and getting some attention (like the government IT advocate for SMBs), and in terms of news, lots of talk about security services and outsourcing them, as well as business continuity and disaster recovery solutions.

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Conclusion: One of the key activities in Contract Management is the governance and performance management process that is used to ensure that suppliers meet their contracted deliverables.1 Despite the importance of this process to the achievement of the goals surrounding the contract, in many situations contract managers report that the performance targets and related governance processes have not worked, and in some cases, actually hindered contract performance.

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It’s been a fairly hefty month in terms of IT outsourcing: lots of great deals and news! There have been a lot of announcements about planned government IT projects, and spending allocations – all potential future tenders.

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Conclusion:Despite the importance of the contract in the procurement process some IT organisations continue to delegate full responsibility for contract preparation to their legal group or to external legal advisors. This can result in an overly legalistic document which may also fail to adequately address the non legal requirements that a buying organisation also needs in the contract.

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It’s January, so as usual there has been a lot of attention on reviews of activity in 2009, and 2010 forecasts. An upturn in outsourcing spending is predicted, and the forecast seems solid – large deals and lots of government tenders are early indicators. Mostly, upturn predictions are founded in new technologies the business sector is looking to adopt, eg. Cloud computing. Let’s hope for a good 2010 IT year!

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Particularly during the tough economic times, we find that the performance of CIOs can often be weighed too heavily on short-term criteria at the expense of strategic long term goals. In such environments when outsourcing is being considered, the pressure to minimise current costs and to be seen to take quick, decisive action can lead to significant longer-term problems.

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Conclusion: In Australasia in 2009, admittedly in the thrall of the GFC, an unprecedentedly high number of CIOs lost their jobs. A broad spectrum of CIOs were involved: some were high profile industry figures, a few had been promoted from within whilst others with seemingly well-credentialed backgrounds had been in their roles for a matter of months.

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A monthly review of all of the sourcing activity, upcoming tenders and news items. Not much to say about the news this month except that it’s thin! (as to be expected, with the holidays), though there were lots of tenders early in the month.

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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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