Treasury and the Ministry of Economic Development (MED) said they had asked outside companies to bid to run administrative services for the government, including information technology management, human resource management, procurement and executive corporate services. If the bid process extends to full outsourcing, the move has the potential to transform the way Wellington's bureaucracies are run and slash government spending on salaries and other services. Treasury and MED did not say how much money they wanted to save or how many workers may be involved, but government is currently forecasting spending of NZ$33.5 billion on 'other operating expenses' in the year to June 30, 2010. "The Government has asked the Treasury to investigate options to improve the efficiency and effectiveness of government by leveraging economies of scale across government. Administrative and support services have been identified as a key area where economies of scale can be achieved," Treasury said. "The RFP (Request for Proposal) seeks proposals for data gathering from a representative group of state sector agencies (benchmarking) then identifying and evaluating options to reduce the cost and improve the efficiency and effectiveness of administrative and support services from an all-of-government perspective (the "stage one" business case)" The RFP closes on February 19.
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