The Queensland Government's master vendor model to procure temporary IT workers will most likely lay to rest after having discussions with the IT recruitment industry, according to the Australian Information Industry Association (AIIA).
In July, the Queensland Government unveiled its plan to reduce what it was paying for temporary IT workers by 5 to 10 per cent. It proposed a new purchasing model, which involved having one master recruitment vendor for those employees it sources to fill its ad-hoc IT needs.
The IT recruitment industry was concerned this would destroy the industry and put forward an alternate model which saw the government using a limited pool of more strongly governed and regulated suppliers.
The AIIA said in a letter to members last week that it had, in meetings with the government, probably negotiated the Queensland Government master vendor model into an early grave.
"The AIIA in conjunction with ITCRA, have been actively engaging with the government to develop a model that achieves greater efficiencies and cost savings from a streamlined procurement process that maintains the strength and viability of the ICT services industry," the AIIA said. "At our most recent joint meeting, further constructive discussions occurred on an alternative model," the AIIA said.
The crux of these meetings was that, most likely, a master vendor would not be appointed and the government would not operate its own resource pool. Instead the industry was working with the government to refine an alternate model to the satisfaction of both sides.
At first, the market would operate as it has, with no limitation on suppliers. However, in the longer term, the number of suppliers will be rationalised. The industry will create a regulatory and governance framework, while the government procurement office will appoint an independent broker to buy contracting services.
The details of the possible future model are still being ironed out by a joint working group with the Queensland Government Chief Procurement Office.