By ADAM GIFFORD
State Services Minister Trevor Mallard has asked the Ministry of Economic Development to work formally with industry groups and others to improve the way the Government buys information technology.
Information Technology Association (ITANZ) president David Irving said the move should address widespread industry concern. He has met informally with key officials since July to work through industry gripes.
"A working party has met once a fortnight to kick ideas around," said Irving, who is the chief executive of Wellington systems integration and software development firm Synergy.
"While we are not saying 'Here's the answer', we have suggested areas where things could improve."
The buying process can start with a request for information, or RFI, being broadcast to the market, followed by a smaller group of vendors being invited to submit a request for proposal, or RFP.
Up to 100 vendors may be involved in the RFI stage, and up to 30 at the RFP stage, which can involve each vendor in several days of work to prepare the required paperwork.
If companies are shortlisted, they may then have to invest tens of thousands of dollars building a proof of concept. With no prizes for coming second, Irving said the process could waste time and money.
"From an industry perspective, some Government departments overuse the process in an attempt to ensure transparency," Irving said.
"They start with an RFI when they can go straight to an RFP, or even just select the people they know can deliver.
"It would reduce the number of people in the bids. I doubt it would change the outcomes, but it would reduce the amount of effort expended on both sides.
"If, for example, you wanted to redevelop the Swift system that runs benefit payments, you know only four or five companies could do that work."
Given the membership of ITANZ, which includes New Zealand and multinational vendors, the association is not pushing a "buy New Zealand" approach.
"If all else is equal I believe you should buy local, but you should not weight the choice towards a New Zealand solution," Irving said.
But with the Government accounting for a third of the IT market, support from departments was essential if the industry was to meet the ICT Task Force aim of 100 New Zealand companies achieving $100 million in earnings each year within 10 years.
Mallard seeks improved IT buying
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