Today the State Services Commission released the final version of advice for government agencies on managing the risks of offshore ICT contracting. The advice is supplemented on the website with a 2-page summary and an FAQ.
The public consultation (18 October – 16 December 2008) was very successful with several major vendors submitting comments. The vendors were generally supportive of the work but were concerned that it was risk- rather than benefits-focussed. They felt it could be used as an excuse for avoiding not just any consideration of offshore suppliers but even consideration of locally-based offices of international companies. We have acknowledged that concern.
Following the consultation, we’ve changed the title to more clearly reflect the document’s scope. We’ve increased the information about agencies’ responsibilities to conduct open and transparent procurements in accordance with the Mandatory Procurement Rules, New Zealand’s international treaty obligations and other good practice advice from the Ministry of Economic Development and the Office of the Auditor General. The stronger language in the introductory sections emphasises our focus on managing the risks.
For those of you who read the PDF version of the Interim Guidance, you’ll notice that the layout of the material has changed. Now, both HTML and PDF versions have the same layout. That layout incorporates the risk mitigation information in the relevant sections that explain the risks (as well as in an appendix). This will improve usability of the information and reinforce the message that we are advising risk management not risk avoidance.
We received preliminary feedback from some agencies who have considered the advice in the light of particular projects they had at the time. They say they have found it helpful in thinking through the issues and identifying where they needed to pay more attention.
The advice does not introduce any new policy nor does it create any new requirements for agencies. It provides information to help agencies meet their obligations under existing procurement policies, international obligations, the Public Finance Act, the Privacy Act and the Public Records Act.
