Software scheme looks for Government help

By ADAM GIFFORD

Computer applications developed for government agencies could be sold elsewhere to bring in revenue of between $500 million and $800 million over the next five years, says the Information Technology Association (Itanz).

It wants changes in the way agencies buy technology and closer co-operation between the industry and the state sector. The aim is to develop products that firms can aim at the $170 billion worldwide market for government applications.

A concept report delivered to key ministers this month calls for the Government to fund a centre for advanced government applications, which could cost about $2 million a year to run.

Itanz president David Irving, of Wellington software development and services company Synergy, said it could start off as a "virtual centre", with one person working part-time on a few product concepts to prove the idea worked.

"It might be optimistic to try to do everything at the first step, but we should at least dip our toe in the water," Irving said.

The centre, representing the information and communications technology industry, would discuss with senior government executives problems that might be addressed by technology solutions, or present advanced ICT concepts and solutions the Government might not be aware of.

"Innovation teams", consisting of centre staff and industry representatives, would work with government agencies to interpret their needs into a form of request for information which would go to centre members and affiliates.

This is an attempt to streamline the present request for information process, which Itanz members consider unnecessarily complex and expensive.

"There is a general feeling there is a better way to do government IT procurement," Irving said.

The centre would also identify whether projects were suitable for commercial development and work with members and agencies to ensure it was done effectively.

Irving said New Zealand was a good place to develop applications that could be sold globally, as the electricity and health software sectors had shown.

"We have state-of-the-art communications and technologies, but by modern developed world standards we have low transaction volumes, so people can develop applications here and make sure they work before taking them elsewhere.

"We are almost unique in that. Singapore is the other country which is similar."

The concept report said 35 commercialisation projects over a five-year period could generate $157 million to $236 million of new domestic sales, $378 million to $567 million of new export sales, and up to 600 new jobs.

David Cunliffe, the Associate Minister for Information Technology, said the idea for the centre was worth serious consideration.

"I will be asking my officials to consider it, and it is aligned with other work going on in the Government's digital strategy review," he said.