Tech industry says barriers keep Canadian companies from selling to government

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OTTAWA — Bureaucracy makes it too difficult for Canadian tech companies to sell to government, a new report from an industry group says — and all that red tape is keeping them from a bigger piece of the billions spent on procurement.

In some cases, companies find it easier to sell to foreign governments, says Laurent Carbonneau, director of policy and research at the Council of Canadian Innovators, which represents the Canadian tech sector.

"In fact, they do so enthusiastically and they wish they could sell in Canada, but their own governments make it very hard for them to do so." The federal process has led to scandals such as the Phoenix pay system debacle, and is not serving the government's own purposes, it said, citing a report by the auditor general that said a third of "mission-critical government digital applications" were in poor health.

"That's actually a really, really bad way to buy software and any kind of innovative product where the parameters might shift during development." "Layers of bureaucratic approvals, while individually justifiable, collectively stretch the process beyond timelines that are reasonable for commercial entities," it reads.

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