Williams bites back over outsourcing report criticism

Williams bites back over outsourcing report criticism

Summary: The Minister for Information Technology, Communications and the Arts, Daryl Williams, has hit back at ZDNet Australia commentator Fran Foo over her column entitled Australia: A country in denial. The text of a letter from Williams to Foo follows below.

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TOPICS: Tech Industry
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The Minister for Information Technology, Communications and the Arts, Daryl Williams, has hit back at ZDNet Australia commentator Fran Foo over her column entitled Australia: A country in denial. The text of a letter from Williams to Foo follows below.

"Your article "Australia: A country in denial" (ZDNet Australia, 23 March 2004) questions the value of findings in the KPMG Competitive Alternatives report on the basis that Australia was a sponsor of the study.

"The KPMG study received sponsorship from more than 60 economic development agencies across nine countries. Given that the countries we were assessed against also sponsored the survey, it is difficult to see how Australia's sponsorship could have significantly influenced the result. The study was conducted independently by KPMG, using objective, measurable data.

"Your article also suggested that lack of participation of countries such as India was a failing of the KPMG study. This reflects a lack of understanding of the market in which Australia is competing.

"It is important to recognise that the global ICT outsourcing market is often differentiated based on the type of ICT work that is being outsourced. Australia is often competing for ICT work that is different, and in some cases of higher value, from that being sought by countries such as India.

"The focus of the KPMG study on developed nations is particularly relevant to high value-added ICT services. The study ranked Australia above our competitors for this type of work, including Canada and Ireland. These countries currently attract significant high-valued activities in the global offshoring market from countries such as the United States.

"When an independent international study demonstrates Australia's strengths in the international ICT sector, the Government believes these results should be highlighted and promoted to help further develop the sector. Australian ICT companies, who are out there selling our industry to the world, should also know about these good results.

"It would be unfortunate for such positive outcomes to be reduced by any analysis that does not fully consider the merits and context of such studies".

Daryl Williams.

Topic: Tech Industry

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10 comments
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  • If the good senator is so sure that Australia is a great outsourcing destination, then why is Telstra (the government part owned telco) offshoring to India ?
    anonymous
  • I thought the Howard government were just callous b's. I didn't realise they were stupid as well. Go Dazza.
    anonymous
  • The ministers comments are a little light on detail. Where can I find an online copy of this KPMG report. I would like to see for myself what contribution Australia made to this report and what specific high value markets he is talking about. Also, can the minister please post his comments via Talkback like everyone else.
    anonymous
  • And so the wordplay begins... I presume Mr Williams made it very clear that the report covered only "high-value-added" outsourcing? I doubt it very much. Spin the positive, delete the negative. It's common knowledge Australia is losing overall to places like India, plus our continuing efforts to retain a leading position in winning high-value-add contracts are dismal.
    anonymous
  • If you really believe this ("The study was conducted independently by KPMG, using objective, measurable data."), I have a bridge I'd like to sell yuo. Go Fran!
    anonymous
  • I just had a quick look at the executive summary. In regards to the IT industry - Australia came first because of it's low labor costs compared to other countries surveyed. Now if India had been included...
    anonymous
  • As if the big accounting firms are independent anyway. Arthur Andersen anyone? PriceWaterhouse with their review of NAB, providing draft copies to the people they're supposed to be reporting on. Puh lease.
    anonymous
  • Quote from Dazza:
    "It would be unfortunate for such positive outcomes to be reduced by any analysis that does not fully consider the merits and context of such studies".

    You're contradicting yourself daz...

    Quote from IT Professional:
    It would be unfortunate if ignorant people in power considered only the merits and context of a small part of the industry when it is politically favourable to do so.

    Lots of us don't work in the area of "high value" outsourcing...don't kid yourself Daz...your term has been the worst period of time for IT in Australian history and though this could have been an opportunity for you to have impact, you've done nothing tangible to help us out. I would also like to know what the hiring criteria is for the IT portfolio...I've worked in a legal firm before so maybe I could do it? :o)
    jasono@...
  • Interesting statement. If the IT outsourcing industry in Australia is booming, then why is it that several european IT outsourcing experts I know, can't find a company here willing to employ them, saying there is no work for that kind of skills here.......?
    anonymous
  • The BMC Software

    BMC software has closed down it's Inside Sales and made all the staff redundant.
    anonymous