NSW to make it easier for IT firms to sell to government

13 Dec 2010

Source:  StartUpSmart
The NSW Government will attempt to reduce the red tape and costs associated with selling IT goods and services to government by amending an agreement known as Procure IT. Procure IT contains specific policies relating to the procurement of IT goods and services within a government environment.

The Australian Information Industry Association has lobbied for amendments to Procure IT for many years, arguing it carries commercially unacceptable risks for suppliers of information and communications technology. The AIIA says government departments and agencies use external law firms to “tighten up” procurement terms and conditions. The added red tape makes the contractual environment worse for suppliers, and involves significantly more cost for all those involved.

The AIIA deemed the practice as being risky and costly compared with other states, but the amended Procure IT is expected to deliver government annual savings worth tens of millions of dollars. NSW Premier Kristina Keneally says the government was finalising the amendments, with Procure IT to be launched on February 22, 2011.