Centrelink opts out of outsourcing group

The Commonwealth Department of Family and Community Services together with the Centrelink Board have moved quickly following the Humphry Review of the Whole of Government IT Outsourcing Initiative to opt out of the Group 1 tender process.

A statement issued by Centrelink claims the body agrees with the Humphry report and has made its move after considering the material and recommendations contained in it. Its next step is under consideration.

"The Centrelink Board has commissioned a strategic sourcing assessment to determine how Centrelink will implement the government's IT&T infrastructure outsourcing policy," the statement explained.

"In accordance with the government's response to the Humphry report, the Department of Family and Community Services has considered which approach will best meet its requirements. The Department has issued a new request for tender to the market for its specific infrastructure needs," the statement continued.

Centrelink's comments were immediately seized by Labor Senator Kate Lundy, who claimed the decision by the department and Centrelink was "an acknowledgement that they would have been exposed to unacceptable risks and liabilities.

"The decision by Centrelink's board to explore strategic sourcing indicates a willingness to pursue best practice principles in sourcing IT expertise," she said. "Hopefully this approach will make the most of the knowledge and expertise that exists within the department while drawing on innovative developments in the private sector."

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