[LINK] savings not real

[Jan Whitaker]

This in the Age from Health:

http://theage.com.au/news/2001/01/16/FFXBRYINZHC.html

No savings in IT outsourcing

                   By ANNABEL CRABB
                   CANBERRA
                   Tuesday 16 January 2001

                   The Department of Health and Aged Care is
                   unlikely to achieve any of the planned
                   $16million in savings from outsourcing its computer 
networks,
                   according to a departmental document.

                   The department has found, one year into its five-year, 
$350 million
                   outsourcing deal with IBM Global Services, that the 
costs of managing
                   the contract have absorbed the expected savings. "If 
these costs are not
                   able to be materially reduced, there will be no direct 
savings to Health
                   and Aged Care," says the document, produced in answer to 
a question
                   on notice from the Senate estimates committee.

[snip]
more spin on who to blame....