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NSW Government to Spend $1.5b on ICT in 2008-09

by Staff Writers •
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Intermedium now estimates that the NSW Government will spend as much as $1.5 billion on ICT products and services during the 2008-09 financial year. Having finalised a detailed analysis of the 13 June State Budget papers, Intermedium has identified ICT projects for general government agencies valued at $585 million. A further $109 million worth of projects was identified within Government Trading Enterprises, in organisations such as Sydney Water and Sydney Ferries.

The figure for non-capital ICT expenditure is more difficult to determine because a significant level of ICT expenditure is “hidden” inside the operating expense budgets of each agency and authority. This includes allocations for ICT training, hardware and software maintenance, support and contract ICT staff.

Intermedium's Budget modeling suggests there is an additional $800 million of ICT spending in the NSW Budget, contained in these operating expenses.

It’s time consuming and difficult to obtain detailed information about the NSW Government’s ICT procurement intentions but a detailed analysis of the budget line-by-line and agency-by-agency has enabled Intermedium to come up with some very valuable information about the NSW Government’s ICT procurement intentions for 2008-09.

Amongst the agencies with the largest capital budgets for ICT were, not surprisingly, Education, Police and Health. However, Department of Commerce, Department of Lands, BusinessLink, Work Cover Authority and Department of Environment also intend to embark on ICT activities worth over $10 million.

Intermedium’s forecast likely underestimates the ICT spend within the NSW Government as it does not include the ICT component of the massive $13.9 billion infrastructure projects announced in the budget for the 2008-09 year.

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