The Department of Finance is expecting to save $17 million over the next four years by cutting outsourced IT work.
The department said it will continue reducing its reliance on external contractors by insourcing IT roles, having set a target of $9.5 million in total outsourcing reductions in the last financial year alone.
In its corporate plan for 2025-26 [pdf], Finance singled out its Central Budget Management System (CBMS), a platform used by the department to assemble the Commonwealth budget and track agency spending, as an area of focus.
“Insourcing this core function will enhance APS [Australian Public Service] capability and enable APS staff to better drive delivery for this whole-of-government system,” the department said in the report.
Finance’s efforts form part of the federal government’s broader push to reduce the use of contractors and consultants in the Australian Public Service, as outlined in the Strategic Commissioning Framework [pdf].
According to an update in November last year, this initiative will see federal agencies bring at least $49 million worth of technology services inhouse.
However, the update also revealed that two-thirds of agencies consider some work within the IT and digital solutions job family to be “core,” despite widespread outsourcing of these functions.
“Agencies report widespread outsourcing of core work in this job family and note it is difficult to bring inhouse,” the update stated [pdf].
Finance, which leads several key whole-of-government tech initiatives – including the recently released GovAI – said one of its top priorities for 2025–26 is to “build the capabilities and culture that foster an innovative and adaptive ICT workforce.”
This aligns with its efforts to “strengthen [its] foundations through programs of ongoing system modernisation,” and to improve its cyber posture by ensuring its “technology platforms are fit-for-purpose.”
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