DIY - the need for internal capability?

A recent directive in Canberra requires departments to limit the use of contractors and reduce unnecessary outsourcing of core work of the Australian Public Service. This is the essence of the recently released APS Strategic Commissioning Framework. The key statement of intent from this framework is:

The core work of the APS must be done by our core workforce – APS employees.

This is generally a good idea. There are a number of use cases and situations where the public service should definitely return to the building and maintenance of their own internal capabilities, without undue over-reliance on contractors.

The framework provided the following examples of functions that now must be delivered by the APS:

• developing cabinet submissions, once they are in a Cabinet classified environment
• drafting cabinet submission recommendations at any stage of policy development
• drafting legislation and regulation
• leading policy formulation
• roles that are on an agency’s executive team

...and the following as examples of functions that must be brought in-house as a matter of priority:

• undertaking procurement and managing contracts
• undertaking standard cost benefit analysis (excluding major capital, infrastructure, complex IT and secure assets such as defence)
• delivering programs and managing grants

The framework includes the allocation of responsibility for rebalancing the workforce onto Agency heads, and requires that achievement of targets are reported through the APS Agency Survey process.

I am surprised that the scope of core work doesn't include ICT support functions - particularly ongoing development and improvement of digital platforms and core business applications. This is really where the main business benefits for government are to be mined over the next 10 years.

It is also interesting to note that this kind of mandate has been tried in most Australian jurisdictions over the years, and its never really worked out. I think this is to do with the fact that the whole government operating model isn't well setup to attract, develop or maintain this kind of talent. Gone are the days of significant investment in government traineeships or graduate programs, and offering the right pay and career development pathways in these areas is hard.

Will this new push 'to do it yourself' produce the goods?

There are a number of use cases and situations where the public service should definitely be building their own internal capabilities. ICT support, configuration and development teams for core systems would be an obvious one for me. However to make this work they need a lot more than just policy. Policy mandates on this topic have been floated before in various jurisdictions, but they fail because the MOG just doesn't support this in its current state.

Albanese government has told public service bosses they must set targets to reduce their reliance on outsourced labour by June 2024.