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Home Features Case studies The $484m all-you-can-eat digital deal for Human Services
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DEPARTMENTSDepartment of Human Services
TAGS e-government, Technology, Procurement, Digital, Department of Human Services, IBM, Gary Sterrenberg, digital government, digital technology
The Department of Human Services has inked a new procurement approach to engaging with major tech vendors, agreeing to a flexible five-year $485 million portfolio deal to use IBM’s services and consultants.
Canberra’s mega Department of Human Services has signed an innovative five-year, $484 million technology and services deal with IBM that lets the agency choose from a broad portfolio of services, products and expertise, rather than pre-described specific deliverables.
The procurement agreement is the first of its kind worldwide and provides the department with flexibility to consume products, services and expertise through a capacity on-demand model, supporting DHS’ major ICT transformation program. DHS includes the Department of Social Services and the Department of Health, as well as Medicare, Centrelink and the management of the child support program.
The portfolio is undertaking a major transformation shifting users to digital platforms as well as replacing its creaking welfare platform that carried $166 billion in payments last year. The portfolio managed 124 million self-service transactions and engagements in 2014-15. Former ANZ bank CIO Gary Sterrenberg (pictured) is leading the major ICT overhaul.
This agreement does not cover the actual replacement of the payment platform (known as the Welfare Payments Infrastructure Transformation program, or WPIT). A tender for an off-the-shelf system is being evaluated for this platform. Some $60 million has been allocated to support the first tranche of this work.
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Tom Burton is publisher of The Mandarin based in Melbourne. He has served in various public administration roles, specialising in the media and communications sector. He was a Walkley Award-winning journalist and executive editor of The Sydney Morning Herald. He worked as Canberra bureau chief for the Australian Financial Review and as managing editor of smh.com.au. He most recently worked at the Australian Communications and Media Authority.
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