At least 300 jobs expected to be lost to offshore firms in first three years of government contract

THE NSW government is demanding software companies applying for a $100 million contract to provide IT services must hire at least one-third of their programmers overseas.

Chhatrapati Shivaji Terminus in Mumbai, India, where one of the shortlisted firms is based. Picture: iStock

THE NSW government is demanding software companies applying for a $100 million contract to provide IT services must hire at least one-third of their programmers overseas.

At least 300 Australian IT jobs are expected to be sent overseas in the first three years alone.

Secret tender documents obtained by The Daily Telegraph reveal the Roads & Maritime Services project stipulates there must be a “minimum” of 20 per cent of “offshore” jobs in the first year, 30 per cent in the second year and an “ongoing approach to increase offshore efforts” in subsequent years of the seven-year contract.

The glamorous side of Mumbai at a rooftop bar. Tata Consultancy Services, based in the city, has made the short list.

It is understood that two Indian companies, Tata Consultancy Services, based in Mumbai, and Wipro Ltd, headquartered in Bengaluru, have made the short list and were asked to submit a ­revised offer to the RMS on May 11.

Indian programmers earn about $10 an hour compared to $100 for Australians.

The revelations come as RMS chief information officer Rob Putter announced his resignation this week after just 16 months in the role.

He previously worked in Abu Dhabi for Etihad Airways and spent a year based in Mumbai with Jet Airways.

Women shop in a Mumbai market. Indian IT operators earn about 10 per cent of their Australian counterparts.

The government’s “Request for Proposal” document sent to bidding companies on February 13 explains “cost reduction” is the reason it requires jobs be sent overseas.

“RMS is seeking to achieve the lowest possible cost to provide the Services,” it says.

Under the title, “Offshore Resourcing” the document says: “Prices should account for the achievement of RMS’s target offshore resource utilisation such that: an initial year one target of 80%/20% onshore/offshore resource utilisation; a year two target of 70%/30% onshore/offshore resource utilisation; and a measured ongoing ­app­roach to increase offshore efforts over the contract term.”

Minister Melinda Pavey declined to comment. Picture: Richard Dobson

Mark Morey from Unions NSW. Picture: David Swift

Companies are required to be “materially reducing costs by streamlining the applications suite, leveraging public cloud infrastructure and ­increasing automation.

Use of offshore resourcing ­(initially 20 per cent of total contract effort being offshore) with gradual increase over the contract term is ­expected to support the contractor to provide services at the possible lowest cost.”

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Opposition Leader Luke Foley last night demanded the government keep the jobs in NSW. “This is an utter disgrace. The Berejiklian government is betraying local workers,” he said.

Mark Morey, secretary at Unions NSW also called on the government to “tear this requirement up immediately”.

“The idea that our own elected government would mandate that work should go to anyone but Australians is ridiculous,” he said.

An RMS spokesman said the “ongoing tender” was “commercial in confidence”.

Roads Minister Melinda Pavey declined to comment.