Australia's newest ASX 50 technology company is issuing a stark warning to governments, urging them to prioritise homegrown technology in procurement decisions or risk the nation falling behind in the critical global race for sovereign digital capability.
The Call for a 'Fair Go' in Government Procurement
Brisbane-based enterprise software giant TechnologyOne says Australia can no longer afford to be a spectator while major economies like the United States and Europe aggressively invest in their own innovation, particularly in the field of artificial intelligence.
According to CEO Ed Chung, Australia possesses the talent, commercial track record, and research capability to lead the world in the next technological wave. However, he argues that without fair access to government contracts, local innovation is consistently overshadowed by foreign tech giants and global consulting partners.
"AI is the fastest growing technology in history. We have to decide now – do we want to be leaders or passengers?" Mr Chung stated. He pointed to a persistent "cultural cringe" within bureaucracies that continues to favour overseas solutions despite political rhetoric supporting local industry.
The consequence of inaction, he warns, is severe. "The biggest risk is that we build a conveyor belt to take our best and brightest out of the country," he said, highlighting the brain drain that could cripple Australia's future prospects.
Proven Success and a New AI Model
TechnologyOne, founded in Brisbane in 1987 and now valued at over $13 billion, serves as a prime example of what Australian tech can achieve. The company has grown by focusing on software for public-sector services and higher education institutions in Australia, New Zealand, and the UK.
"We are exporting homegrown software around the world, including AI that is way ahead of anything our competitors are offering," Mr Chung asserted. He lamented a pattern where great Australian ideas are commercialised overseas, forcing the nation to "pay other people in other countries to buy back things we invented."
The company is challenging the status quo with its newly launched agentic AI product, called Plus, which is set for release to its global customer base in the coming months. Furthermore, its unique SaaS+ model handles all implementation in-house without extra charges, directly addressing the cost overruns common in traditional tech projects outsourced to consultants.
National Prosperity and Digital Sovereignty at Stake
Mr Chung warns that continuing to undervalue local software puts national prosperity at risk. He points to Australia's alarming drop in the global economic complexity rankings – falling from 93rd to 105th, behind nations like Botswana – as evidence the country is losing ground.
"That means the job choices available to our kids are going to be way more limited than we want for them," he explained. However, he sees the disruptive force of AI as a massive opportunity for Australia to catch up and lead.
A critical part of this leadership, according to Mr Chung, is embracing digital sovereignty. TechnologyOne ensures all customer data remains in Australia, a policy he believes should be a national priority. "Do we really want to be reliant on technology from overseas when we know it is going to be at the heart of every aspect of our personal and business lives? That feels like a risk we shouldn't take," he said.
To catalyse change, Mr Chung proposes a simple but powerful shift in procurement processes: agencies should start by asking, "If not Australian, why not?" This single question would force a genuine evaluation of local capability.
He concluded with a challenge to federal leaders: "You've all started to talk the talk, and that is great. But your bureaucrats are not yet walking the walk. The rest of the world is sprinting. Let's do what we do best and join the race to win."
