Terms of Fed's Outsourcing Review Announced

Minister for Finance and Administration John Fahey has given an assurance yesterday the review into IT outsourcing will be made public.

Releasing the terms of reference for the IT outsourcing review, Fahey said the findings will be disclosed in full by the government and are due for release in late December.

The Minister's assurance may spike calls by the Labor Opposition for a full Senate inquiry into the debacle as a result of an Australian National Audit Office report showing huge budget blow-outs and massive fees paid to consultants.

Labor believes it has cross-bench support for an inquiry and is currently negotiating terms of reference with the Democrats.

Fahey said the review's terms of reference will focus on implementation risks associated with the transition of IT operations from commonwealth agencies to external service providers.

As a priority, he said, the review will examine Group One and Group 11 tender processes currently at market.

The review will examine the tenders let to date taking into account the Auditor-General's scathing report, the views of government agencies and contractors and will examine how implementation risks are managed in the context of tender processes.

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