What's Happening?
The U.S. Department of Defense has disclosed its spending on IT and digital contractors, amounting to $410 million for the fiscal year 2023-24. This figure is part of a broader government audit that revealed total spending on external IT and digital labor
across various departments. The audit aims to reduce reliance on external contractors by rebuilding internal capabilities. Other significant spenders include the Departments of Health and Aged Care, Treasury, and Social Services.
Why It's Important?
The disclosure of defense spending on IT and digital contractors highlights the government's efforts to increase transparency and accountability in public spending. By reducing reliance on external contractors, the government aims to enhance internal capabilities and efficiency. This move could lead to cost savings and improved management of IT resources, impacting the overall effectiveness of government operations. The focus on internal capability building may also influence future policy decisions regarding public sector employment and contractor use.
What's Next?
The government is expected to continue its efforts to reduce external labor spending, with potential policy changes to support this goal. Departments may implement new strategies to attract and retain skilled IT professionals, thereby reducing the need for contractors. The outcome of these efforts could set a precedent for other sectors, influencing broader public sector employment practices.
