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

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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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