[LINK] Outsourcing news reports 16/1/1

[Bernard Robertson-Dunn]

If anyone is still interested in the ongoing shock, horror, boofhead,
outsourcing folly, here are pointers to the news reports I have seen
today. I have quoted all of Michelle Grattan's political view at the
end

Agencies take charge of outsourcing
Selina Mitchell
16 January 2001
http://australianit.news.com.au/common/storyPage/0,3811,1612605%5E442,00.html


IT companies told to abandon bids
By Selina Mitchell
16jan01
http://www.theaustralian.com.au/common/story_page/0,4511,1614300%255E2702,00.html


Fed IT Outsourcing in Limbo 
By Helen Han
Australian ComputerWorld
http://computerworld.idg.com.au/cwt1997.NSF/cwtoday/602928C2C8D822304A2569D500222AE5!OpenDocument
SYDNEY, 15 January, 2001 


Industry backs review of outsourcing
By Byron Connolly and James Riley, iTnews
Monday January 15, 2001
http://www.itnews.com.au/story.cfm?ID=5305


IT outsource advisors reap $17m
By MARK LUDLOW
16jan01
Herald Sun
http://www.news.com.au/common/story_page/0,4057,1612844%255E421,00.html


Fahey should quit or face sack: Crean
Verona Burgess 
Canberra Times
http://canberra.yourguide.com.au/detail.asp?class=news&subclass=national&story_id=15066&category=general%20news


Lessons to learn on outsourcing
Canberra Times Editorial
Jan 16
http://canberra.yourguide.com.au/detail.asp?class=your%20say&subclass=general&category=editorial%20opinion&story_id=15077


Reality check for Mr Fahey
Ian Grayson
16 January 2001
Editorial Australian IT 
http://australianit.news.com.au/opinion/editorial/0,2666,,00.html


Call for Fahey's scalp over IT policy 
By Andrew Clennell and Toni O'Loughlin 
SMH
16/1/1
http://www.smh.com.au/news/0101/16/national/national1.html


Locals to benefit if Govt outsourcing dumped 
By Lee Glendinning and Kirsty Needham 
SMH
16/1/1
http://www.smh.com.au/news/0101/16/bizcom/bizcom1.html


Opposition demands explanation from Fahey on IT outsourcing 
ABC News
161/1/
http://www.abc.net.au/news/2001/01/item20010116005108_1.htm


Wedge widens between Howard and his minister 
Relations began badly and stayed that way, says Michelle Grattan. 
SMH
16/1/1
http://www.smh.com.au/news/0101/16/national/national2.html

John Fahey is facing an exceptionally grim year. 

He won't be sacked, as the Opposition urged yesterday, but the
outsourcing shambles will widen the wedge between him and John Howard. 

Relations between the Prime Minister and his minister have
deteriorated from the first days of the Government when Howard
promoted the former premier, who entered Federal Parliament in 1996,
straight into Cabinet.

Howard was unimpressed when some (former) staff of Fahey, a leading
moderate, made known their criticisms of the PM. The republican debate
- when Fahey was a "yes" leader - exacerbated this. So did the fact
Fahey was seen as allied to Peter Costello.

There is tension between the secretary of Howard's department, Max
Moore-Wilton, and Fahey, and between Moore-Wilton and Finance
secretary Peter Boxall. 

On the policy side, Fahey has handled the budget aspect of the Finance
portfolio well. 

But IT outsourcing has now turned into a major debacle and Fahey's
blaming the bureaucracy won't wash. The program needed to be conceived
with more sensitivity, and executed with much greater flexibility.

Fahey conceded yesterday that probably the individual agencies should
have had responsibility for implementation from the beginning, but
defended central control because they "were unwilling to embrace" the
policy. Better arrangements should have been made to get both support
and cater to varying needs. 

The confusion is bad for the Government in business circles, just when
it is about to launch its innovation statement, aimed at encouraging
industries like IT. 

All this while Fahey's own political future is uncertain.

The battle with Alby Schultz for Hume has become a knock down, drag
out fight. Fahey is determined to shift because his seat of Macarthur
is notional Labor after the redistribution.

Assuming he gets Hume preselection, the Liberal Party expects Schultz
will go ahead with contesting as an independent. Some Liberal
strategists believe he would have a chance of defeating Fahey. 

Howard has kept his distance from this nasty skirmish. Fahey has felt
let down by his leader. The Howard camp claims little would be gained
by him further aggravating the volatile Schultz. 

It all adds up to worsening disgruntlement between Howard and Fahey.

-- 
He knows nothing; and he thinks he knows everything.
That points clearly to a political career.
-- George Bernard Shaw, Major Barbara (1907) act 3

Regards
brd

Bernard Robertson-Dunn
Canberra Australia
brd@dynamite.com.au