The Australian Taxation Office (ATO) is building a new IT contractor panel designed to slash red tape and save the agency up to $4 million annually by improving processes and cutting supplier costs. In a request for tender (RFT) issued Friday, the ATO said it intends to build a panel consisting of five tier 1 large IT service providers and a number of tier 2 specialist companies to address niche skill requirements. The ATO runs the largest IT branch in the public service with a tech workforce of 2,000 staff and 200 contractors. It has an annual IT budget of around $800 million. The agency spends up to $45 million annually on tech contractors. The Tax Office’s CIO, Bill Gibson, said the new model had been developed by cherry-picking what the agency believes are the best aspects of government and private sector IT procurement arrangements. “The first of its kind in the APS [Australian Public Service], this panel will allow the ATO to create a better process for attracting and engaging suitably skilled and experienced IT contractors quickly and cost-effectively. “It will increase transparency, accountability and allow room for innovation over the long-term,” Gibson said. A vendor management system will underpin the panel, assisting the ATO to procure and management contractors, cut down administration, and improve compliance and cost management. The RFT follows consultation with industry following the ATO’s release in May of a request for information (RFI). The RFI invited suppliers to propose models to improve the procurement, engagement, and management of IT contractors. At the time, the ATO described its IT contractor recruitment methods were inefficient, costly and unnecessarily complex. “Industry involvement in this process was critical because the new model needed to be effective for both the ATO and stakeholders,” said Gibson. “It was clear that there was a strong desire for a new model that encapsulated best practice features of private sector procurement processes while meeting contemporary government procurement standards.” The new panel is expected to commence in mid-2015. Follow CIO Australia on Twitter and Like us on Facebook… Twitter: @CIO_Australia, Facebook: CIO Australia, or take part in the CIO conversation on LinkedIn: CIO Australia Follow Byron Connolly on Twitter:@ByronConnolly Related content brandpost Sponsored by AWS in collaboration with IBM How digital twin technology is changing complex industrial processes forever As the use cases for digital twins proliferate, it is becoming clear that data-driven enterprises with a track record of innovation stand the best chance of success. By Laura McEwan Dec 05, 2023 4 mins Digital Transformation brandpost Sponsored by AWS in collaboration with IBM Why modernising applications needs to be a ‘must’ for businesses seeking growth Around one-third of enterprises are spending heavily on application modernisation and aiming for cloud native status. The implications for corporate culture, structure and priorities will be profound. By Laura McEwan Dec 05, 2023 5 mins Digital Transformation opinion 11 ways to reduce your IT costs now Reorienting IT’s budget toward future opportunities is a big reason why CIOs should review their IT portfolios with an eye toward curbing unnecessary spending and realizing maximum value from every IT investment. By Stephanie Overby Dec 05, 2023 11 mins Budget Cloud Management IT Governance news analysis SAP faces breakdown in trust over innovation plans The company’s plan to offer future innovations in S/4HANA only to subscribers of its Rise with SAP offering is alienating customers, user conference hears. By Peter Sayer Dec 05, 2023 6 mins SAP Cloud Management Innovation Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe