neWs: asia pacific
australia commits
billions to infrastructure
Global suppliers in the This is on top of the
construction and technology announcement in April that
sectors are two of the big the government intended to
winners following the delivery partially fund the deployment of
by the Australian government of a AU$43bn broadband network
a budget designed to help the across the country, delivering
country spend its way out of high-speed fibre-to-the-home
economic malaise. services to 90% of Australians
The budget, handed down over the next eight years.
by Treasurer Wayne Swan on 12 The government is currently
May, allocated AU$22bn ($18bn) creating a new entity to manage
to infrastructure projects the design and development
including investments in roads, of the network, and will seek
rail and port infrastructure. Many investment from existing
of the projects were selected telecommunications companies
specifically on their ability to in exchange for access to the
reduce infrastructure bottlenecks new network.
and promote further economic No decision has yet been
activity while the economy made on suppliers, but foreign
recovers as expected beyond suppliers including Alcatel-
2010, including AU$3.4bn Lucent, Ericsson, Cisco and NEC
funding for roads and AU$4.6bn have expressed strong interest
in funding for rail infrastructure. in what should be the largest
A further AU$3.5bn is being infrastructure project ever
invested in clean energy. undertaken in Australia.
indian iT oUTSoUrcinG rideS
oUT SaTyam Scandal
By Brad Howarth analyst firm Ovum, David Mitchell,
Fears of a backlash against India’s the scandal has led to greater
IT outsourcing industry have scrutiny of other Indian service
been allayed, with the accounting providers, with clients tightening
scandal that rocked Satyam up some of their vendor selection
Computer having generated criteria and making them work
minimum repercussions for rival harder to prove their capabilities.
Indian companies. “It has created a greater focus
Not surprisingly the biggest on transparency, governance and
impact has been felt by Satyam accountability being driven both
itself, which saw the resignation by clients, the vendors and also the
of disgraced chief executive Indian Government,” Mitchell said.
Ramalinga Raju, the loss of 75% of But he added that long-term
its market value and large numbers damage to the overall Indian
of accounts, including the National IT sector appears to have been
Australia Bank. avoided: “Essentially, buyers appear
Satyam was subsequently to have looked past this scandal
acquired by Tech Mahindra in April and are continuing to engage
after its board accepted a bid of with the Indian industry in ever-
Rs 1,757 crore for 51% of the increasing numbers. If anything,
company. given the current economic
According to the senior vice climate, outsourcing is being
president of IT research at the considered at a far greater level.”
PBS12 pp04-11 Comment+News.indd 6 5/6/09 15:25:44
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