The Independent Commission Against Corruption (ICAC) has suggested agencies can reduce the risks from corrupt IT contractors by outsourcing to managed IT service providers.
The report claimed the rapid advancement in IT has put public service executives at risk of employing contractors who "over-service, over-price and under-deliver".
"For public sector managers, the oversight of IT projects and engagement of IT contractors is fraught with risks of delays, cost blowouts and failure to achieve project goals," the paper said.
Several anonymous examples were included in the paper. In one instance an IT contractor recruited five of his associates and defrauded the agency of more than $400,000.
ICAC suggested some companies can avoid corrupt practices by completely outsourcing a project to a managed services provider.
"When risks are high and the project capabilities of the organisation are low, project management and risk can be transferred to the supplier, albeit at a premium price... These high-risk situations would be approached as one of contract management and not project management."
It is a preferred alternative to offering an IT specialist permanent placement as "specialists in cutting-edge technologies [do not] want to work where they are paid less and lose skills," the report said.
Five key 'levers' were also detailed in the report to help public servants avoid corrupt contractor dealings.
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