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ATO shaves $4m off IT contractor panel

Monday, 03 Nov 2014

The Australian Tax Office expects to save $4 million annually from a reformed IT contractor panel that will introduce a new fee structure, two-tiered approach and performance targets for suppliers.

The ATO has spent the better part of this year working on how it could achieve better value for money and cut down on admin from its IT contractor panel arrangement, and will today take its new approach to the market for applications.

The 10 year-old panel - on which the ATO spends between $36 million and $40 million annually - at its height counted 48 members, including the likes of Data#3, Deloitte, Fujitsu, UXC, Oakton, and PricewaterhouseCoopers.

The panel had become out of step with industry trends and administratively burdensome for ATO staff, resulting in the tax office earlier this year embarking on a reform project designed to reap it better value for money.

That effort saw the panel initially reduced to 28 in July, and from today will require all IT contractors to re-pitch for the agency’s business and a spot on an even slimmer panel.

The ATO’s new approach strives for ongoing cost reductions, better contractor performance, and greater procurement accountability and transparency - as well as making it more simple for industry participants.

Read the full story by itnews at: http://www.itnews.com.au/News/397399,ato-shaves-4m-off-it-contractor-panel.aspx#ixzz3Hyq6h0Rp