The National Australia Bank (NAB) historically relied on third parties for help with IT, but what that resulted in was the bank one day waking up with no internal tech capability.
According to NAB executive general manager for infrastructure, cloud, and workplace Steven Day, the bank's outsourcing model led to quite a few problems.
"Like many large enterprises, NAB decided to go on this outsourcing journey about 10 years ago -- outsourced pretty much all of the infrastructure -- and we got to a point now where there's no internal staff with any technical capability," Day told AWS re:Invent in Las Vegas on Monday.
Canberra is gearing up for a significant restructure of the Australian public service, which could see swathes of the government’s back-office services outsourced to the public sector or even sent offshore.
The federal government, led by the Department of Finance, will officially begin implementing its first whole-of-government shared services scheme in the second half of 2016, despite acknowledging the corporate model’s chequered past in state government.
For a business already struggling to improve its image, having one of your major projects described by MPs as a “shambles” is not the best advertisement.
But for bosses at Capita – the company behind the London congestion charge, running the teachers’ pension scheme and collecting the BBC licence fee – it’s just the latest in a series of setbacks.
In the wake of the collapse of Carillion, the outsourcing sector has come under ever more scrutiny, and Capita has been in the spotlight for all the wrong reasons.
The Australian Taxation Office (ATO) will spend the next three years breaking up its IT contracts into smaller bundles.
Written in a blog post on Tuesday, CIO Ramez Katf said the shift would allow the ATO to target its contracts better.
"This allows us to reach a wider market of specialist providers for each service and ensure we're engaging the right expertise," Katf said.
"We expect to gradually approach the market for each bundle over the next three years, with exact timelines to be determined by a number of factors, including business priorities and the expiry of existing contracts."
As each bundle goes to market, the ATO said it will then provide more details.
While our cricketing relationship may have soured with the South Africans, our business dealings seem to be rising with Australian companies increasingly looking for alternative cheap employment options other than the Philippines.
“For the past 18 months I have been using South Africans in Cape Town to help me with my business here in Australia,” Peter Wilson, founder of The Shopper Collective, says.