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Iemma Government Outsources to India

Monday 3 December 2007

Morris Iemma’s trip to India last month to supposedly generate more job opportunities for NSW was simply an exercise in spin, after revelations the Labor Government contracted workers in India to monitor the state’s computer-based telephone network and related systems, Shadow Minister for Commerce Mike Baird said today.

“Morris Iemma is being a hypocrite, claiming he travelled to India to create new jobs for NSW workers while outsourcing jobs to India,” Mr Baird said.

“Last year the NSW Department of Corrective Services contracted 3D Networks to provide its Voice Over Internet Protocol (VOIP) network, however 3D outsources the monitoring of the network to Planet One whose staff in Bangalore handle out-of-hours monitoring,” he said.

“NSW workers are missing out on these jobs and there is an obvious potential security risk when outsourcing IT systems.

“The Premier has been outspoken in his criticism of Westpac’s use of an Indian call-centre, yet his Government is doing exactly the same.

“It is difficult for the people of NSW to trust the Iemma Government when they thunder the importance of NSW workers to their business partners yet happily outsource themselves.

“Australian Bureau of Statistics figures released last month show NSW remains significantly behind other states in economic growth, holding back job creation.

“If the Iemma Government is going to improve the state’s economic growth, which is currently the second-lowest in the country, there should be incentives for employment in NSW, not a policy of outsourcing.

“What other jobs are the Iemma Government planning to outsource?” Mr Baird said.

Mr Baird called for an Auditor General investigation into the integrity of all NSW Government IT systems to prevent potential security breeches, particularly from outsourcing arrangements.

“NSW residents need to be assured that sensitive information on the state’s computer networks is not being compromised,” Mr Baird said.

MEDIA: Lisa Harrington - 0406 726 880

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Comments (1)
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Out sourcing to India - What are the benefits?  
Does it benefit the TAX payer? 
 
 
Outsourcing is only effective in two very specialized areas. Where the tasks simple and tightly defined and require few judgement decisions from the people doing them. Telemarketing ‘call centres’ are a good example of these types of tasks.  
At the other end of the spectrum are highly specialized tasks that require high levels of expertise in a special area. Software engineering, movie making special effects is two examples of this type of outsourcing. In these situations companies can not afford to have people with these highly specialized skill-sets on the payroll full time or they may not need their services full time. This makes outsourcing this type of work practical. 
 
Outsourcing non peak time procedures that require workers to be involved in the fabric of the work flow do not fit either of these situations. This is particularly true of technical support centres. People in these centres need to be involved in the total operation of the system. This involvement must be an ongoing process. These people must be aware updates, past problems and solution applied to those problems. They must be aware of plans in the pipeline, so no counter productive steps are taken. This knowledge is not acquired by setting down in front of a screen for 10 minutes at the beginning of a shift.  
 
Outsourcing a non-peak time operation may look good on paper but in the real world it will fall flat on its face. The clients of these companies will suffer reduced levels of service when this type of outsourcing is employed. The only winner is the paper shuffling executive who arranged this operation.
Posted by: Brent Roberts at 27-02-2008 20:18