The Opposition has also claimed the local technology services industry is being left out in the cold.

However, the SA Office of the CIO has used 2005 to undertake an assessment of the state's IT needs with Mailes claiming the government now has an annual spend of about A$250 million a year to engage in multi-sourcing.

He said a number of software deals have been signed in recent months including a A$30 million contract with Microsoft and a network management agreement with Novell.

"Initially, there was going to be 12 contracts available but that will be reduced to about eight," Mailes said, adding that the government will not be rushed into finalizing all of the contracts this year.

He said the government was acutely aware of the transition process and wanted to allow plenty of time to ensure the changeover was a smooth one.