The Department of Finance expects to save $17 million over the next four years by cutting outsourced IT work. It will continue reducing reliance on external contractors by insourcing IT roles. Last year, the department set a target of $9.5 million in outsourcing reductions.
In its corporate plan for 2025-26 (PDF), Finance highlighted the Central Budget Management System (CBMS) as a key focus. The platform is used to assemble the Commonwealth budget and track agency spending. According to the department, “Insourcing this core function will enhance APS capability and enable APS staff to better drive delivery for this whole-of-government system.”
These efforts are part of the federal government’s broader strategy to limit contractors and consultants in the Australian Public Service. The Strategic Commissioning Framework outlines this policy. Moreover, an update in November last year revealed the initiative aims to bring at least $49 million worth of technology services inhouse.
However, challenges remain. Two-thirds of agencies report that IT and digital solutions roles are considered “core,” yet much of this work is still outsourced. The report stated that it is difficult to bring these functions inhouse despite their importance.
Finance leads several whole-of-government tech initiatives, including the recently launched GovAI project. For 2025–26, the department says it will prioritise building “an innovative and adaptive ICT workforce.” In addition, it plans to strengthen its foundations through modernisation programs and improve cybersecurity by ensuring technology platforms are “fit-for-purpose.”
