DTO develops online market for gov't IT start-ups

Published by Admin 13th April 2016 | 61 Comments

The federal government's Digital Transformation Office is constructing an online marketplace designed to motivate start-ups to bid for a slice of the federal government s $5 billion annual spend on IT tasks.

The task comes as part of the Turnbull government s $1.1 billion national innovation and science program, which seeks to encourage innovation through the advancement of scalable, active, high-growth tech start-ups.



In the very first stage of the development of the marketplace, the DTO will analyze obstacles that avoid tech start-ups from providing digital products and services to federal government.

The discovery phase of the market is set to begin in April, with a public beta expected by the end of the year.

While the marketplace remains in advancement, the DTO plans to develop a series of targeted panels of service providers aimed at motivating greater partnership in between government and the tech market.

The first panel, a digital specialist panel, is designed to make it much easier for federal government departments and companies to access the digital know-how they need to supplement their in-house teams.

Bernie Woodcroft, a director of Queensland-based start-up accelerator program ilab, informed iTnews that while the announcement moves the dial forward from a start-up perspective, it was only a preliminary step.

Public procurement varies from personal in two methods: it has to be reasonable and be seen to be fair, and the risk of public failure must be low. This has actually resulted in obstacles of entry that work versus brand-new ingenious entrants, Woodcroft said.

Existing innovation nowadays allows for various paradigms, more iterative applications and supports faster advancements of modification. Against this background, the old style procurement presents its own risks.

So the concentrate on supporting smaller sized, more agile business and offering them access to federal government IT invest can be a really positive contribution.

Development minister Christopher Pyne said because until now there had actually been too many hoops to jump through, many start-ups just hadn`t bothered to request government IT work.

The digital market will be an online brochure of services, individuals and technology to help federal government with service change, Pyne said in a declaration.

We`re keen to open this up to smaller sized and newly-established businesses that have actually typically discovered it, a too big concern to show their credentials to government.