Review of the Australian Government's Use of Information and Communication Technology

By Sir Peter Gershon CBE FREng
In April 2008 Minister for Finance and Deregulation, Lindsay Tanner, engaged Sir Peter Gershon to lead an independent review of the Australian Government's use and management of information and communication technology (ICT).

Sir Peter provided Minister Tanner with his report on the 28th of August 2008.

Minister Tanner released the report on 16 October 2008.

Sir Peter’s report provides a comprehensive and detailed analysis of a wide range of issues affecting the Government’s use and management of ICT, and also outlines a staged plan for the implementation of recommendations. The Government is currently considering the findings and recommendations.

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Table of Contents
Glossary of abbreviations
Executive Summary
Introduction /Context
Methodology
Key Findings
Summary of key recommendations
Implementation
Acknowledgements
Introduction
Chapter 1: Views from within the Australian Government
ICT Investment Decision Making
Project delivery
Organisational capability
People
Managing ICT spend
Procurement and ICT Outsourcing
Use of best practice
Views on existing whole-of-government arrangements
Views on data centres
Views on the ICT industry
ICT arrangements in Ministerial Offices
Chapter 2: Views from outside the Australian Government
Better utilisation of ICT assets
Shared services
Standardised/coordinated approach to procurement
Use of Commercial Off-the-shelf Solutions
Need for standardisation
Whole-of-government governance
High costs of tendering
The Australian government compared to other governments
Skills shortage
Green ICT
Security Clearances
Best practices
Chapter 3: Summary of survey findings
Survey approach
Survey Results
Chapter 4: Key findings
Weak governance of pan-government issues related to ICT
Agency governance mechanisms are weak in respect of focus on ICT efficiency and understanding of organisational capability to commission, manage and realise benefits from ICT-enabled projects
The business as usual ICT funding in agencies is not subject to sufficient challenge and scrutiny
Disconnect between the stated importance of ICT and actions in relation to ICT skills
There is no whole-of-government strategic plan for data centres. In the absence of such a plan, the government will be forced into a series of ad hoc investments which will, in total, cost significantly more than a coordinated approach
The Government ICT marketplace is neither efficient nor effective
There is a significant disconnect between the Government’s overall sustainability agenda and its ability to understand and manage energy costs and the carbon footprint of its ICT estate
Chapter 5: Recommendations
Recommendation 1 – Strengthen pan-government governance
Recommendation 2 – Strengthen Agency Governance
Recommendation 3 – Tighten the management of ICT business as usual funding
Recommendation 4 – Enhance the management of the APS ICT skills base
Recommendation 5 – Data Centres
Recommendation 6 – Improve the efficiency and effectiveness of the ICT marketplace
Recommendation 7 – Sustainability of ICT
Chapter 6: Implementation
Appendices
Terms of Reference
Submission questions
Survey instrument
Submissions received
Consultations
Agencies with ICT Spend over $20 million in 2007–08
Agencies with ICT Spend $2 million to $20 million in 2007–08
Candidates for whole-of government approaches
Proposed criteria for whole-of-government approaches and arrangements subject to opt-out
Proposed role of AGIMO
Linkage between Terms of Reference and Recommendations
Details of ICT Review Team
Letter from Sir Peter Gershon to the Hon. Lindsay Tanner
The Hon. Lindsay Tanner
Minister for Finance and Deregulation
Parliament House
CANBERRA ACT 2600

Dear Minister

I have now concluded the Review of the Australian Government’s use of Information and Communication Technology (ICT) which you invited me to undertake on behalf of the Government on 25 March 2008, and attach my report for your consideration. The terms of reference asked me, amongst a number of issues, to review and report on both the efficiency and effectiveness of the Australian Government’s current use of ICT, to determine whether the Government is realising the greatest return from its investments in ICT, and to examine whether the right institutional arrangements are in place to maximise the return.

This report is the outcome of a process in which I have sought to (i) gather a substantial body of evidence to understand how ICT is currently used and managed; (ii) analyse the evidence to identify significant issues; and (iii) produce recommendations which will address these issues. This has involved engagement with the Prime Minister, Ministers, across government, and with industry and other interested bodies. During this process, 112 submissions were received, 63 meetings held, 3 visits made, and 1 large and 2 small surveys conducted.

The outputs of the review provide a snapshot of the current state of ICT in the Australian Government.

At the heart of my findings is a conclusion that, not withstanding the work undertaken to date, the current model of weak governance of ICT at a whole-of-government level and very high levels of agency autonomy, characterised by an ability to self-approve opt-ins to existing whole-of-government ICT arrangements, leads to sub-optimal outcomes in the context of prevailing external trends, financial returns, and the aims and objectives of this Government. While ICT has undoubtedly benefited government administration and the delivery of key public services, I have also found that benefits realisation and the measurement of benefits arising from investments in ICT are areas where there is substantial scope for improvement, together with measuring and improving the efficiency of current ICT operations.

My recommendations involve a major program of both administrative reform of, and cultural change from, a status quo where agency autonomy is a longstanding characteristic of the Australian Public Service. Based on my experience of creating sustainable change in the United Kingdom public sector environment, there are two critical requirements which will determine the success of this reform program: firstly, sustained leadership and drive at Ministerial and top official levels and, secondly, ensuring the enablers of change are properly resourced, not only in funding terms but also with skills of the right calibre.

Given these two requirements are met, I am confident that the recommended actions and changes can be successfully implemented over the next two to three years and deliver substantial benefits to the Australian Government.

Thank you for the opportunity to lead such a stimulating and challenging review. I would like to pay tribute to my team of agency and AGIMO secondees whose commitment, contribution, professionalism and support made it possible to undertake an exercise of this complexity and size in a tight time frame.

Sir Peter Gershon CBE FREng
28 August 2008