Media Release

75/2009
6 November 2009

Savings on Government ICT Total $1 Billion

More than $1 billion in savings will be returned to the Budget by reducing Government expenditure on information and communication technology (ICT) business as usual activities over the next four years.

Minister for Finance and Deregulation Lindsay Tanner said the second round of the ICT business as usual budget reductions program had now been completed with savings of close to $430 million identified between 2010-11 and 2012-13.

“In his independent review of the Government’s use of ICT, Sir Peter Gershon noted that savings of around $1 billion could be achieved over four years by reducing agencies’ business as usual ICT costs,” Lindsay Tanner said.

“In April this year, phase one of the program was completed with savings of approximately $570 million being identified. The completion of the second phase of this program means the savings foreshadowed by Sir Peter Gershon have now been realised.”

Lindsay Tanner said the Australian Government Information Management Office (AGIMO) had been working with agencies over the past 12 months to identify where savings could be made.

“AGIMO has been assisting agencies to reduce their ICT business as usual costs by up to 15 per cent annually. Importantly, these cost reductions have not come from cutting service delivery capability, but from more efficient use of ICT.”

Half of the savings achieved in the process will be reinvested in programs that drive further ICT efficiency improvements.

“The process of assessing their business as usual practices and identifying savings has made agencies much more aware of their ongoing ICT expenditure,” Lindsay Tanner said.

“Agencies are now looking at how they can make further efficiency improvements and have already begun putting forward proposals to utilise funds from the savings pool. I expect to be able to announce the first group of projects in the coming months.”

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