Does the local IT industry need 'protectionism'?

It has been reported in the local media, the NSW Government plans to source 'Australian Made' goods and push local companies for contracts for certain industries.  

The Daily Telegraph "revealed all NSW Government departments and agencies will be forced to protect Australian jobs by giving preference to locally made products".

"This would include stationery, uniforms, cars and even trains and building contracts".

CRN has not been able to confirm the details of the plan with Treasurer Eric Roozendaal's office, or find out whether or not it will be extended to other industries, like IT.

However, the issue of protection for the local IT industry has been an ongoing one and IT service providers, like ASI, believes it is an issue not looked at enough.

In an interview with CRN, Maree Lowe, director at ASI, said supporting local IT businesses, shouldn't be about patriotism but value for money.

"Nobody wants to hear a winger," she said. "But what's Labor doing for the IT industry?"

"Around 30 years ago there were tarriffs in place and additional protection for primary industries.

 "Times have changed and the world has moved on."

Lowe said CIO and Government ministers in tough economic times talk often about getting the best value for money from projects, however there's very little understanding or emphasis on how support for a local IT company can be a part of the value.

"The big problem is big projects always go to international companies," she said.

"So if the Government spends $1 million dollars with a global company, 13 percent of that stays in the country.

"If it was spent with a local business around 60 percent of that would stay in the country and create a 'trickle-on' effect."

Lowe said the NSW Government was one of the States not showing enough support for local IT business.

She cites a recent tender which ASI was shortlisted for with three other global vendors.

"We lost out, despite being able to show value for money and cost savings," said Lowe.

"Speaking to someone about why we didn't get the tender afterwards, they said ASI only employs 200 people, the global vendor has thousands.

"I'm not saying all contracts must go to local companies, but there needs to be a better alignment."

According to Lowe, back in 1999/2000, the Liberal Government forced multinational vendors to work with local IT companies.

"Big vendors can't do everything, so the Government must look at where Australian companies can come and add value," she said.

"Don't give companies projects for the sake of patriotism, but give them a fair crack."

 "There's a share of the IT pie for everyone and you don't want to lose local innovation."

Is Lowe a lone voice in the wind on helping the local IT industry? Is the local IT tender process fair? Should more be done for the local IT industry?

Vote on the issue at CRN's poll.