Post Implementation Review of Insourcing the Domestic Operations of the Pacific Australia Labor Mobility Scheme

The Department of Employment and Workplace Relations (DEWR) is the Australian Commonwealth agency responsible for supporting people to have safe, secure, and well-paid work with the skills for a sustainable future. Within DEWR, the Pacific Labour Operations (PLO) Division oversees the domestic operations of the Pacific Australia Labour Mobility (PALM) Scheme, which had recently been insourced from a contracted provider.

DEWR sought a review to understand three critical aspects: the extent to which they successfully insourced the domestic operations including the IT system; how well the new delivery model was performing; and what options existed for improving the efficiency and effectiveness of these insourced arrangements.

The context presented several complexities. The previously contracted provider was still delivering the offshore operations with their contract up for re-tender, complicating effective engagement. Additionally, the PALM scheme is funded by the Department of Foreign Affairs and Trade (to both DEWR and the contracted provider), requiring the engagement to factor in three different perspectives and experiences of the insourcing.

Our review aimed to provide DEWR with a solid evidence base to report back to government on the success of insourcing and to identify lessons learned for DEWR and potentially other departments for future insourcing exercises.

Our mixed-methods approach allowed us to triangulate findings across multiple data sources, identifying consistent themes while highlighting divergent perspectives where they existed.

Our approach leveraged multiple data collection methods to ensure a comprehensive assessment of both the transition process and current operations:

Our analysis revealed that under difficult circumstances, the PLO Division completed the transfer of functions within schedule and budget. This achievement was largely possible due to the dedication of leaders across organisations and the exceptional effort of staff involved in the transition.

The establishment of a dedicated Transformation Branch to lead the insourcing ensured there was sufficient capacity to deliver on schedule and budget. However, we identified that formal change management capability would likely have improved people's experience of the process, particularly in managing expectations and maintaining clear communication throughout the transition.

The transitional operating model successfully ensured service continuity was maintained throughout the insourcing process with minimal impact on Approved Employers. As operations continue to establish themselves, we identified an opportunity for DEWR to take stock and refine the operating model to improve stakeholder experiences in the process.