GovTech will continue working with vendors amid agency changes: Jasmin Lau

[SINGAPORE] The Government Technology Agency (GovTech) expects to still “work very, very closely” with external vendors, even as it moves towards in-house products, Senior Minister of State for Digital Development and Information Jasmin Lau told Parliament on Tuesday (Aug 4).

The update came in the wake of a restructuring exercise at the agency that was accompanied by mass layoffs on a scale unusual for the public service. A total of 93 people were retrenched in the first of three phases that are expected to take place over two years.

“We do recognise that there are still many projects that are being managed with vendors, and we also value the expertise that industry and vendors bring,” she said, rejecting as a misunderstanding the notion that GovTech does not intend to use vendors any longer.

“There is clear recognition, whether in the public or private sectors, that vendors remain a key partner in our digital ecosystem.”

In multiple parliamentary questions about the restructuring announced last month, MPs asked for the profile of the affected staff, retraining and redeployment support, and the implications of GovTech’s shift from a project delivery to product ownership model.

GovTech has attributed the need for restructuring to a move away from overseeing external vendors’ projects and towards the in-house development of digital products.

Calling the impact on workers “a necessary part” of the shift, Lau said: “GovTech’s workforce will grow because of this shift, but its composition will also need to change.”

She affirmed that the Ministry for Digital Development and Information was consulted on the workforce transformation plan and supports it. She also reiterated that hiring at GovTech will be expanding for roles such as software engineers, data specialists and cybersecurity experts.

GovTech – which has a headcount of roughly 3,900 – expects 7 to 9 per cent of roles to be restructured over two years. The move affects staff at forward deployed teams embedded in other government agencies.

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Contract officers in project and vendor management roles are also more likely to be affected by planned workforce transformation, said Lau.

She disclosed that officers in their 40s made up about two-fifths of all employees affected by the restructuring so far, including the group that was laid off.

About 30 per cent of those retrenched were above the age of 50, Lau added in response to a question from MP Patrick Tay.

Similarly, there is no significant difference in tenure between those who were made redundant and those retained.

The retrenched officers are still on GovTech’s payroll and receiving job transition support. Lau, who is also acting minister for manpower, added that “we intend to monitor their progress through the job placement efforts to make sure that they have a good landing”.

She noted that GovTech’s workforce has already evolved in recent years through natural attrition and targeted recruitment, “but not enough to meet our needs”.

Noting that the agency’s transformation was not unanticipated, Workers’ Party MP Louis Chua asked why the retrenched workers could not be prepared for other public sector roles.

“Unfortunately, it is the pace and the scale of the changes that have required us to take the current steps,” Lau replied, adding that the agency also wanted to let affected workers consider opportunities in other public and private sector organisations.

Separately, National Trades Union Congress secretary-general Ng Chee Meng said at a tech industry career fair that the sector “has been transforming faster than most industries” and noted that professionals, managers and executives (PMEs) in tech have lost their jobs in recent weeks.

“As more tech companies restructure, we know that this creates uncertainty for many PMEs. But there are other employers that are still looking for tech talent, and jobs are available,” he said at the Tuesday event organised by NTUC’s Employment and Employability Institute.