4.34 The Agency expected the International Business Division would be able to market RULES and other systems and that the first successful bid for a system project would arise by March 2000. In practice it has not been possible to sell any of the Agency's systems. The Agency told us that potential users find them expensive and they are not readily adaptable to meet local circumstances.
4.35 If the Agency and CMG decide to continue with the international venture the intention is that Radio Spectrum International will develop the next generation of IT systems on a modular basis. This will permit systems to be more readily sold overseas and, where necessary, to be tailored to suit local circumstances.
4.36 This aspect of the project highlights one area where improvements might have been possible. The Agency did not carry out an in-depth assessment of the market for their expertise; this might have identified that their systems were not readily saleable and affected the emphasis placed in the procurement on linking the provision of IT services and commercial exploitation as one project. The Agency were also unable to prepare a detailed business proposal for the sale of their systems and expertise that might have encouraged more interest in the project. The implications might not be significant to the Agency as CMG have provided the working capital for the venture and the Agency is therefore exposed to minimal financial risk.