Key chapter findings

Results of the agency survey show that agencies are continuing to outsource corporate services and functions, particularly ICT and HR services. During 2004–05, 44% of agencies reported finalising a new ICT outsourcing contract or contract extension, consistent with 47% of agencies in 2003–04. Furthermore, the proportion of agencies that outsourced at least one aspect of HR services almost doubled in 2004–05 (38%) compared to 2003–04 (20%).

Consistent with previous findings, it is evident that in some agencies there is still insufficient capability to manage outsourcing effectively. Although just under half of all agencies did not experience difficulties in managing outsourced contracts during the year, just over one-third reported such difficulties. Contract management capability was reported as a difficulty by 43% of agencies that experienced some sort of difficulty during the year, a slight increase on last year’s result. Relevant large agencies continue to be most likely to report contract management capability as a difficulty; however, this year there was an increase in both relevant medium and small agencies reporting contract management capability as a difficulty.

The most positive development in this area in 2004–05 was the substantial increase in the proportion of relevant agencies using training as a means of maintaining the required level of skilled contract managers they need to support and drive their outsourcing arrangements.

go to top of the page