Software generally used by individuals and organizations is proprietary software. This kind of software is closed, available at a cost, and its copyright is owned by the organization that develops it. This means that the end user does not have access to source code, cannot make changes to the software to suit individual needs, and the software cannot be redistributed. Open source software, on the other hand, allows its user access to source code, thereby allowing them to customize the software according to their needs and integrate it with existing software infrastructure; and, if need be, redistribute it. Open source software, therefore, has potential benefits for government agencies in terms of electronic service provision to general public. However, there are many issues around open source software uptake in government agencies, and if the adoption of OSS is to be encouraged then these issues have to be addressed. This paper presents an account of these issues as identified by the government agencies from Australia and New Zealand