News last week suggested that salaries in the information and communications technology (ICT) sector were up 12 per cent across the board for the six months to December 2006.

But AIIA’s Survey of Salaries and Remuneration Packaging in the Australian ICT Industry, which captures information on new, existing and departing employees across the breadth of the ICT industry, forecasts a budget of 4.1 per cent for 2006-2007 across the ICT sector.

According to AIIA’s Chief Executive Officer, Sheryle Moon, AIIA’s August 2006 Salary Survey revealed total salary increases of 5.8 per cent on average for existing employees.

AIIA and the Australian Computer Society (ACS) have signed a Memorandum of Understanding (MoU) which outlines their commitment to lead and coordinate efforts to address ICT skills shortages.

AIIA remains committed to developing an industry-driven recycling scheme, despite the recent announcement that governments across Australia are looking to introduce regulations in 2007.

AIIA has welcomed the federal government’s decision, announced last week, to cease its requirement that ICT suppliers be endorsed under the Endorsed Supplier Arrangement (ESA) if they enter into contracts for government business.

“This decision is good news for the ICT suppliers doing business with the largest single ICT market in Australia”, says AIIA’s Chief Executive Officer, Sheryle Moon. “AIIA was involved in the consultation process with government, and is pleased that our concerns have been addressed.”

The ESA was a pre-qualification scheme administered by the Department of Finance and Administration on behalf of the Australian Government, which endorsed suppliers selling to the Australian Government in certain business sectors, including the ICT industry.

“Under the ESA scheme, suppliers were obliged to invest considerable time and money to get a playing card, with no guarantee of a game,” Ms Moon explains.

This resulted in some suppliers, particularly small-to-medium enterprises (SMEs), choosing not to seek government business at all – with the cost of insurance requirements simply too great when there was no guarantee of business to follow.

It also resulted in duplication between the ESA accreditation and agency pre-requisites, with ESA requirements not always appropriate for the relevant contract. And while many suppliers regarded the ESA as a ‘must have’, some agencies entered into contracts with suppliers that had not undertaken ESA accreditation, frustrating those who had followed the process.

“Today’s decision means real savings in time and money for both government and ICT suppliers – as well as removing one of the recognised barriers to the federal government market,” Ms Moon says.

“While ESA was useful when it was first introduced around 12 years ago, in a devolved government environment with a mature ICT market, this decision makes good sense – and largely reflects existing practice.

“Now, suppliers will be able discuss their financials, insurance requirements and references within the more meaningful context of a contract with an agency”, she adds.

Some suppliers may miss one element of the ESA scheme: once accredited, suppliers were eligible to use the ESA logo.

Ms Moon explains that, “many suppliers, particularly SMEs, use the ESA logo extensively in their marketing to demonstrate that they are judged credible and viable by the Australian Government – this was clearly a significant benefit for suppliers who wanted to demonstrate their credentials in export markets.”

However, AIIA appreciates that this benefit was not an objective of the ESA scheme and that the government has agreed to allow suppliers to use the logo until the end of September 2007. Ms Moon adds that AIIA will continue to help its SME members grow globally competitive businesses through a range of products and programs.

The ESA scheme will be replaced by an ICT multi-use list (MUL), in accordance with Australia’s obligations under the US Free Trade Agreement. This list will allow ICT suppliers to register basic business details online, which agencies may then use in select tender processes. To save further duplication, the details of existing ESA accredited ICT suppliers will be automatically transferred to the ICT MUL. Details are available from www.finance.gov.au/ictmul

 “Government markets across Australia are the largest and, arguably, the most strategically important in Australia. However, they are also recognised as among    the most complex markets in which to do business.

“AIIA is working closely with members and governments to remove barriers to doing business with government.  While there is clearly some way to go, the changes in liability and intellectual property are significant.  We are continuing to improve contracting terms and, through our government event series, are helping to build a greater level of understanding between the industry and government”, Ms Moon concludes.

The Bracks Government has reinforced its commitment to the ICT industry by appointing a new ICT Minister for Victoria, says AIIA.

Each week, AIIA’s Bulletin profiles one of the members of our influential Board of Directors.