By Craig Donaldson
The complex economic environment in Australia and around the world will have a significant impact on public sector chief procurement officers (CPOs) in 2011.
Cost management will always remain a central issue for CPOs in government, and the differing economic performance and development opportunities for each Australian state will also have challenging budgetary outcomes.
Guy Callender, chair in leadership of strategic procurement at Curtin Business School, has no doubt that procurement decision-making will become more complex, and the need to meet the service commitments of governments at local, state and federal levels will maintain pressure for increased professionalism of procurement decisions and practices.
“Apart from the growing legal implications of contracting terms and conditions, the changing nature of government procurement is itself a source of complexity. As governments outsource their activities, contracts for goods become contracts for the provision of services,” says Callender.
The sourcing of goods becomes trickier as more offshore or international suppliers become involved, and Callender says the nature of government financing of major projects – whether through public-private partnerships or some type of private financing of public activities – is leading to greater sophistication of contracting and contract management. Read More>>
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