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What the govt’s IT outsourcing trend means for Aussie partners

The Federal Government released its IT trends report for 2015-16 on 14 December, revealing a substantial shift among government entities towards outsourced IT services.

While outsourced IT services remain in the minority in terms of percentage of total IT spend among government organisations, the Australian Government ICT Trends Report 2016-16 revealed a marked rise in such spend.

Of total ICT spend, outsourcing to external providers has increased from 20 per cent to 28 per cent since 2011-12.

Overall, the government’s spend on IT increased from $5.7 billion in 2014-15 to $6.2 billion for the year ending 2016.

Of that $6.2 billion, government entities spent $1.73 billion on outsourced IT services from external providers in 2015-16, a marked increase from the $1.48 billion it spent such services in 2014-15.

Given the rise in spend on outsourced IT services, it comes as no surprise that the overall number of IT full-time employees doing work for public entities declined from 17,758 to 15,808 in 2016, to 10.4 per cent of total full-time employee entities.

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