Hidden away in a News Limited article by Simon Hayes which cries out that Gov't spending on IT will be cut, is a positive statement for local hardware supplier Optima.
The article deals mainly with software and IT outsourcing, as well as supply of hardware, and notes that the WA Gov't is formulating a plan to combine IT resources. While this may sound omimous for all IT businesses, the underlying thread is that Gov't spenders will now be looking more closely at local manufacturers in an effort to keep the money in Australia, a sore point with Optima since the federal gov't made it difficult for local companies to meet big tender guidlines. In spite of this, Optima has been winning some sizable contracts, namely with the defense department, and Queensland Education. Here's what the article said about Queensland: "Queensland's Government is pushing for more local businesses to bid for public sector work, and departments are running seminars on procurement plans.
"The Queensland Government is looking for value for money, but we don't see any need for whole-of-government outsourcing at the moment," Innovation and Information Economy Minister Paul Lucas said.
Queensland spends $544 million annually on IT."
In Optima's annual report, which showed a fifth year of increased profits AND their first dividend, Optima stated they were expanding their sales force nation wide. Already an office in Canberra has been set up. Victoria may be next as that state buys heaps of PCs for their schools. OPI has retraced as often happens after reporting and presents a good opportunity for medium term investment. I've got plenty and will be holding.
OPI Price at posting:
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