Ombudsman attacks technology cost blow outs in IT, business services, mobile and healthcare
A report by Australian National University’s Robert Wilkins has found technology was a critical component in the cost outlier cases that have cost IT operators billions of dollars and the taxpayer millions of dollars.
The study, published Tuesday, is based on the most comprehensive review of cost outlier cases in which technology was at issue. It comes after a study published in November by the International Institute for Strategic Studies found that the cost outlier case costs affected Australian businesses $5.9 billion in lost revenue.
The IT outlier case cost cases led to a loss of $18 million for the Department of Education and the Australian Council of Civilians in 2014.
The report found that cost outlier cases cost Australian businesses $22.3 billion in lost revenue.
The report says that the most important factor contributing to the cost outlier cost cases is technological factors that are not always visible in large IT system costs, including network, infrastructure, software, data center and software management.
“The report found the most significant contributor to the cost in the cost outlier case was the combination of technological (computer programming, maintenance and software upgrade costs) and operational (network and IT infrastructure costs and associated support costs).”
The report recommends a national standard definition of the cost of computing for all major IT systems.
The review was sponsored by the Australian Human Rights Commission and the Law Commission.