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Sydney Water Spends $7.1M On Web Site That Sells One Product

By David Richards | Thursday | 25/07/2013

As Water costs rise management at Sydney Water have found a way to blow your money with the Utility admitting that they spent $7.1M building a new web site.

Retailers attending the Magento eCommerce conference in Sydney said "$7.1M is an astronomical amount for a web site that does not run catalogue feeds, handle shipping or trade a range of products. We range over 45,000 products and we invested less than a third of this amount. Our site is also linked to our stock control system and our retail network".

Since the site was launched Sydney Water had received 138,995 Internet payments totalling more than $35 million via the new site. It had also scored 47,841 hits from teachers and students using it as an education tool.

The $7 million figure was revealed by MD Kevin Young this week after NSW Finance Minister Greg Pearce had been grilled by Opposition members in question time. Pearce did not put a dollar figure on construction of the Web site, saying only that it had cost 4.3 percent of Sydney Water's three-year IT budget.

In a media release Young said the new Web site had been constructed following a rigorous market tender process, which nearly halved the original market estimates.

"After a comprehensive tender process, Sydney Water established a new Web site earlier this year, along with other IT capabilities, at a cost of $7.1 million, which was 42 per cent lower than quotes received in the tender process," Young said. "The Web site came in $0.7 million under budget."

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