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March 1, 2008
Mega IT deal: Govt won't be 'held hostage'
THE Government will not be 'held hostage' by third-party companies, despite outsourcing much of its information technology needs in a $1.3 billion deal awarded on Thursday.

Second Minister for Information, Communications and the Arts, Dr Vivian Balakrishnan, stressed this in Parliament yesterday, saying that the Government was aware of the risks and had taken adequate precautions.

On Thursday, the Government handed the mega IT deal, called SOEasy (Standard ICT Operating Environment), to a consortium of local and foreign firms.

The oneMeridian consortium, led by American firm EDS International, will now supply computers as well as manage the Government's IT networks.

Mr Zaqy Mohamad (Hong Kah GRC) asked what the savings and risks were that came with handing out such a massive project.

Dr Balakrishnan said there were always at least two suppliers for any essential component, so there was no reliance on just one firm.

He added: 'At least 30 per cent of the people involved in this project are Government, civil servants or people within our statutory boards.

'They will be integrated, embedded into the manpower manning this project, so we are never held hostage to any company or consortia...within this project.'

Security teams will also ensure that the system is not easily broken into and taken down by hackers.

Dr Balakrishnan reiterated that the project will help save $500 million over the next eight years.

The project calls for a common technology standard for computers and software, which leads to economies of scale, he explained.

ALFRED SIEW

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