A former tech executive in New South Wales’ service delivery agency has spoken out about outdated procurement processes in government that have created an environment for resellers of cloud software to thrive.
Katherine McDermott, who until late last year led the engineering, design and product team at Service NSW, said a 30 per cent reseller markup was being paid on the hundreds of millions spent on software-as-a-service products each year.
In a submission to the parliamentary inquiry probing sovereign capability in the technology sector, Ms McDermott detailed the “procurement shortfalls” gleaned from her six years leading an 800-strong team of digital professionals while overseeing external IT spend.
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