Intermedium research shows that there was a marked downturn in Defence ICT spending in the 2006-07 financial year. Defence’s share of the Federal Government market declined from almost 40% in 2005-06 to less than 25% in 2006-07. With the appointment of a new CIO, and implementation of changes prompted by the Defence Management Review, Intermedium expects that the market in Defence will recover strongly during 2008.
Intermedium research shows that the total value of Defence ICT spending in 2006-07 was more than $820 million. This compares with ICT contract value in 2005-06 of more than $1.3 billion.
This drop in Defence is not due to any reduction in budget. However, criticism of Defence’ ICT environment and processes made in the Defence Management Review (April 2007) put a break on ICT spending. This was exacerbated by the long period without a permanent CIO.
The recently published Defence Annual Report 2006-07 noted that “The (Defence) review examined efficiency and effectiveness across Defence, looking specifically at management structures, decision-making, and non-operational business processes and information management processes and systems.”
The Annual Report listed a number of challenges for Defence in the 2007-08 financial year, including:
- Recruitment of new CIO.(Greg Farr takes up the position later this month)
- Finalise the implementation of the ICT service delivery accountability framework
- Publish the annual Defence information infrastructure plan
- Accelerate technology update and standardisation of local and base area networks across more than 500 sites
- Introduction of modern data storage architecture
- Implementation of Virtual Private Network technologies to provide mobile and remote users with enhanced access to the Defence Restricted Network
- Following the suspension of the PMKeyS upgrade tender process – develop and implement a revised strategy for achievement of the upgrade objectives
- Develop a strategic view of the future of Defence’s enterprise management system application
- Review the organisational and process arrangements for management of the major ICT outsourcing contracts
- Continue with the introduction of automated tools for the creation and management of customer accounts including self-help capabilities.
Defence Agency Profile: Know your target
Intermedium maintains detailed a detailed ICT profile on The Department of Defence. This comprehensive profile contains a range of information including:
- Defence structure, organisation and key facts
- Programs and responsibilities
- ICT contracts and key suppliers
- Strategic Plan
- Organisation chart and staff profiles
- Budget overview (ICT Budget and ICT contract expenditure)
- ICT Challenges – Defence Management Review
- ICT environment and directions
- organisation structure
- systems and software
- major projects – background and progress
- expiring contracts
The Defence profile has just been updated to include information from the 2006-07 Annual Report.