[NEWS] - Bungle Blows $400M In Taxes

[Buck]

Australian IT
James Riley
JUNE 05, 2003

TAXPAYERS have seen almost $400 million wasted through a budget blowout by the Australian Tax Office on a five-year information technology outsourcing contract.

Figures produced at the estimates meeting revealed that the ATO spent $17.2 million with Microsoft in the current financial year - more than double the $8.6 million it spent with the company just four years ago in 1999/00.

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Out sourcing IT sure can get out of hand. I wonder why the cost of supporting Microsoft went up so high. :roll:

 

[Handruin]

Wasn't something like this mention a while ago where the Ausie gov. spent $4 million on a website? Maybe it's part of the same thing?

 

[time]

Maybe it's part of the same thing?

What, complete incompetence of Australian government departments?

Surely not ...

 

[Buck]

Good memory Handy. It is comforting to see that the U.S. government is not alone in the world of overspending.

 

[Howell]

Out sourcing IT sure can get out of hand. I wonder why the cost of supporting Microsoft went up so high. :roll:

Surely the number of products the MS offered for purchase increased in four years. This is besides the fact that, "When the contract was signed five years ago, EDS had been required to service and provide help-desk support for 18,500 workstations, a number that has now grown to 24,000, the spokesman said."

 

[Buck]

But how do you justify an exponential growth in cost in comparison to workstations? Workstations increased by 30%, but cost increased by 100%. I could see the cost increase caused by the ridiculous rate of MS software. If the entire environment were switched from Windows 98 to Windows 2000, and Office 97 to Office 2000, then yes, the price for 24,000 workstations would be outrageous. Also, if servers were migrated from NT 4.0 to Windows 2000 Server, then more outlandish spending would be required. Nonetheless, overspending a budget by 100% does require detailed justification, especially if it is the money collected from taxpayers.

 

[Howell]

Nonetheless, overspending a budget by 100% does require detailed justification, especially if it is the money collected from taxpayers.

No doubt about that. This sort of thing needs reviewing more often. They are in part blaming the administration of the GST for increased costs. I wonder if they pissed away most of that additional revenue.

 

[honold]

http://www.news.com.au/common/story_page/0,4057,6553997^1702,00.html

 

[Buck]

Thanks Honold, that was a great article. :mrgrn:

 

[Howell]

 

[honold]

http://www.abc.net.au/news/newsitems/s874860.htm