The Gillard government’s treasurer, Wayne Swan, has indicated in the Mid-Year Economic and Fiscal Outlook (MYEFO) that there will be a 20 per cent cut in capital expenditure for government agencies with IT projects worth less than $10 million under the knife.

Some $8 billion worth of additional data centre facilities will be needed if Australia is going to have a sustainable IT economy in the future, according to analyst firm IDC Australia

Federal Government agencies are likely to adopt a self-assessment tool created by the UK Office of Government Commerce to evaluate their ICT capabilities within the month as part of Gershon Review changes.