What's more, many of these organisations are looking to use year 2000 as a focus to redevelop their applications to gain strategic advantage. He continued by saying that the outsourcing of data management functions was a fundamental mistake in many organisations. If an organisation outsources the management of its data, then it is eliminating the ability of its internal IT staff to develop strategic applications using that data. That amounts to stifling proactive initiatives and entrepreneurial creativity within the organisation. However, Mr Gauci said that there was a strong case for outsourcing non-strategic IT functions such as hardware maintenance and support.
Numerous contracts are currently in arbitration or being renegotiated.
It was reported that the biggest points of issue were with the level of the expertise and sophistication that the outsourcing organisations were able to bring to bear, and that the outsourcing didn't improve the information technology services as much as had been expected. Mr Len Bergstrom, in July 1997. The parties to that termination have declined to comment on the reasons. The variation would have outsourced more function to the supplier of the outsourcing services. This inability to agree the variation arose because the outsourcer had determined it had underquoted for the first contracted services and wished to recover its losses in the price attaching to the variation to an extent which the client thought was unreasonable.