ACS Congratulates Canberra on Ipex Outsourcing Contract

Australian Companies Can Hold Their Own Against the Multinationals, says ACS President

Monday 17 January 2000 - The Australian Computer Society (ACS) has congratulated the Federal Government on its move to award the Group 8 outsourcing contract to Australian-owned Ipex.

ACS President, John Ridge, said the decision represented a significant opportunity for the Australian company, which has won the right to operate as prime contractor for the $350 million, five year Group 8 contract.

"We've been saying for some time that more Government contracts should be going to Australian companies rather than the multinationals, and are delighted with the Government's decision to favour a home-grown organisation over its international competitors.

"Australian companies are more than good enough to win contracts like these on their own merits. Size should never be the deciding factor because Government contracts can provide the impetus for substantial growth or for like-minded smaller companies to band together."

Mr Ridge said many of the major US suppliers now operating in Australia had been given their opportunity to grow by the Clinton administration's commitment to favouring domestic companies for major projects and government contracts.

"The only way Australia can establish its own significant IT organisations is for them, either individually or as part of a consortium of IT SMEs, to win government contracts like this and use them as a foundation for substantial growth and development.

"It's also critical that Australian IT SMEs have more opportunities than we've seen to date for involvement in these contracts, regardless of whether they are prime contractor or not. We need to enforce the guidelines that IT SMEs be given preference when larger outsourcing contracts are being allocated, and reduce the cost involved with contract tenders to make it easier for these companies to participate in these negotiations," he said.

Ipex plans to employ around 100 additional staff for the contract, which involves maintaining 7,500 desktop computers operated by seven Commonwealth agencies. Although the contract was awarded on Christmas Eve, Mr Ridge said the timing of the announcement meant that many industry players had failed to hear about this important initiative.

"There have been occasions when the ACS has been vocal in its criticism of Government policies or strategies, but we also need to recognise and applaud those times when we believe they get it right.

"This is definitely one such instance and the Society congratulates the Government on taking seriously the challenges and constraints being experienced by Australian IT SMEs as they seek to establish themselves in this extremely competitive market," he said.

This media release is available on the ACS Web site at http://www.acs.org.au/news/ipexgrp8.htm

ENDS

The Australian Computer Society is the recognised association for information technology (IT) professionals, attracting a large and active membership from all levels of the IT industry and providing a wide range of services to its members. It is the public voice of the IT profession, the guardian of professional ethics and standards in the IT industry, with a commitment to the wider community to ensure the beneficial use of IT. See the ACS Home Page for more information.

John Ridge, ACS President, Tel: (02) 9223 9499 or (0407) 913 992, Email: jridge@mra.com.au

Caroline New, Caroline New PR, Tel: (02) 9980 8060 or (0411) 889 456, Email: cnew@acslink.net.au