Finance Minister Lindsay Tanner has announced the completion of the second round of the ICT business as usual (BAU) budget reductions, which he says has achieved savings of close to $430 million between 2010-11 and 2012-13.
This represents achievement of the $1 billion in ICT BAU budget savings targeted by Sir Peter Gershon in his report to the Federal Government.
Earlier this year, Intermedium identified the ongoing task faced by AGIMO to achieve the Gershon BAU budget savings, highlighting that at the end of the first phase of activity for the ICT Review Teams, around $447 million remained to be identified to meet Sir Peter’s recommended target.
Lindsay Tanner’s statement now confirms these savings have been found.
Significantly, the Minister notes: "these cost reductions have not come from cutting service delivery capability, but from more efficient use of ICT."
Mr Tanner again underscores that half of the savings realized will be reinvested in programs that further improve the Federal Government’s ICT efficiency.
He noted: "The process of assessing their business as usual practices and identifying savings has made agencies much more aware of their ongoing ICT expenditure."
"Agencies are now looking at how they can make further efficiency improvements and have already begun putting forward proposals to utilise funds from the savings pool. I expect to be able to announce the first group of projects in the coming months."