Defence Reveals IT and Digital Contractor Expenditures
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Brief Overview
- Defence allocated $410 million for IT and digital contractors in 2023-24.
- Total government expenditure on external IT workforce was nearly $1.8 billion.
- Initiatives are being implemented to enhance internal capabilities and lessen contractor dependence.
- Health, Treasury, and Social Services also represent significant expenditures.
Insight into Defence Expenditure
The Australian Department of Defence has disclosed an expenditure of $410 million on IT and digital contractors for the 2023-24 fiscal year. This is the first instance where these costs have been specifically outlined, shedding light on Defence’s involvement in governmental IT spending.
Overall Government IT Labour Expenses
The total government expenditure on IT and digital external labour comes to just under $1.8 billion, reflecting a reduction from $1.92 billion in 2021-22. This drop corresponds with a strategic shift towards building internal capabilities and decreasing reliance on external contractors.
Defence’s Standing Among Government Departments
Defence is at the forefront of IT and digital contractor expenditures, outpacing other departments such as Health and Aged Care ($296 million), Treasury ($176 million), and Employment and Workplace Relations ($171 million). This demonstrates Defence’s large investment in digital innovation and technology progression.
Contractors Versus Internal Resources
The most recent audit highlights a governmental strategy to enhance internal capabilities. The government is advocating that departments reduce hiring external labour and concentrate on developing internal skills, particularly in vital fields like IT.
Consequences and Future Pathways
The audit’s results hint at a positive initiative by the government to optimise costs related to external IT labour. By prioritising internal development, the government aspires to create a more resilient and self-sufficient public service.
Conclusion
In conclusion, Defence’s considerable spending on IT and digital contractors mirrors a larger governmental movement towards managing the costs of external labour while bolstering internal capabilities. This strategic adjustment aims to ensure efficient and effective resource management across public service sectors.
Q: What was Defence’s total spending on IT and digital contractors for 2023-24?
A: Defence allocated $410 million for IT and digital contractors in 2023-24.
Q: How does the overall government spending on external IT labour compare to earlier years?
A: The total expenditure was nearly $1.8 billion, down from $1.92 billion in 2021-22.
Q: Which other departments were significant spenders on IT and digital contractors?
A: Major spenders include Health and Aged Care, Treasury, and Employment and Workplace Relations.
Q: What is the government’s approach regarding external labour recruitment?
A: The government aims to enhance internal capabilities and diminish dependency on external contractors.
