A NEW APPROACH FOR BACK-OFFICE FUNCTIONS IN THE AUSTRALIAN PUBLIC SERVICE

28 November 2023

SENATOR THE HON KATY GALLAGHER
MINISTER FOR FINANCE
MINISTER FOR WOMEN
MINISTER FOR THE PUBLIC SERVICE

The Albanese Government is cleaning up the mess that the Liberals left behind by giving the Australian Public Service (APS) more autonomy and choice in modernising ERP corporate systems, using technology and vendors that best meet their needs and budgets.

This is in stark contrast to the Shared Services Transformation Program initiated by the former government where providers were locked in without adequate testing of the market to see what else was available.

The Minister for Finance, Senator Katy Gallagher, said the former government set up a costly program to consolidate APS back-office functions without any regard for the pace of technological change and based on assumptions that have not been realised.

“The Coalition’s program was never going to be delivered on time and on budget. It was based on naive ideas about the ability to standardise complex corporate systems across 100 or so organisations. The program has cost Australian taxpayers almost $400 million over six years.

“The fact that the Liberals/Nationals locked in long-term deals for the GovERP program without proper consideration of competition is remarkable for a government that talked big about being the friends of business.”

The Albanese Government’s new APS ERP approach sets out the strategic direction for how the APS will manage its ERP corporate systems, underpinned by the principles of choice, market competition, and affordability.

ERP corporate systems are fundamental for Commonwealth entities to manage corporate back-office functions. The new approach will ensure the APS can manage its corporate responsibilities effectively and efficiently while continuing to fulfil its legal obligations.

The new APS ERP approach includes:

The Digital Transformation Agency testing the market for ERP solutions and establishing an ERP category of core and edge products on its existing Software Marketplace;
Establishing a Project Management Office in the Department of Finance to support smaller non-corporate Commonwealth entities choose cost-effective solutions;
GovERP being repurposed for use by Services Australia, and any entities that choose to use it. To gain ongoing benefit from the Shared Services Transformation Program, there will also be an independent reuse assessment of GovERP to support Commonwealth entities implement future cost effective ERP uplifts;
A review of existing transactional processing arrangements across the APS.

This approach is expected to increase competition in the ERP market and provide new opportunities for Australian small and medium businesses to sell ERP solutions to the APS.

The Digital Transformation Agency will engage with the market soon about the opportunity to be involved in this new procurement process.

TUESDAY NOVEMBER 28 2023