NSW Government reform to enable leveraging of buying power

The government of New South Wales (NSW) government has announced its biggest structural reform in more than 30 years, merging 160 agencies into 13 super departments.

The new integrated structure will improve collaboration between agencies and enable government to deliver better services for its citizens as a result, said the Australian state’s Premier Nathan Rees.

Through the integration of back office services and the reduction of overlap between agencies, Rees believes that savings will be made, particularly in information technology (IT).

“The government can gain the benefits of synergy by consolidating and reducing the number of data centres. By streamlining its IT procurement processes and leveraging on its buying power, NSW can enjoy economies of scale,” commented Andrew Milroy, ICT Director, Frost & Sullivan.

The most significant reform is the creation of the NSW Transport and Infrastructure super-agency, which will be responsible for all transport and roads coordination, and policy and planning functions. The super-agency takes charge of more than ten per cent of the state’s budget.

This year, NSW government is investing more than A$3.5 billion (US$2.8 billion) on transport infrastructure.

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