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Information outsourcing Decision a Win for Canberra

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Media Statement - S26/98

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O ther M edia Statements [Minister for Regional Development. Territories and [Michael Ronaldson. Parliamentary Local Government Secretary]

[Minister for Transport and Regional Development ! I Departmental]

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Minister for Regional Development, Territories and I R e l e a s e

19 March 1998 S26/98


The ACT economy is set to benefit substantially from the Federal Government's announcement of the preferred tenderer for the "Cluster 3' Information Technology Infrastructure Outsourcing initiative, according to the Federal Minister for Territories, Alex Somlyay.

The Minister said his colleagues, John Fahey and John Moore announced Computer Sciences Corporation Limited (CSC), which has an office in Canberra as the preferred tenderer for the 'Cluster 3' contract awarded under the Whole of Government Information Technology Outsourcing Initiative.

The contract is valued at $ 160 million over five years. Government agencies will save some $60 million on their projected IT infrastructure costs which represents a 30% saving to taxpayers over five years.

'Cluster 3' includes a number of federal agencies including;

• Department of Immigration and Multicultural Affairs • Australian Electoral Commission • IP Australia (formerly the Australian Industrial Property Organisation) • Department of Finance and Administration (acting on behalf of its bureau customers) • Australian Surveying and land Information Group • and the Australian Government Analytical Laboratories

"The announcement contains excellent news for the ACT economy with one of two regional technology centres to be established in Canberra by CSC Limited. The centre will provide IT training, software development and application opportunities for regional Australia.

"Canberra will also reap the employment and investment benefit of a minimum of 24% of the contract value being allocated to Small and Medium Enterprises (SME's) over the coming five years. 04/06/1998

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"The majority of the SME's have turnovers of less than $50 million per annum and five of the thirteen players across Australia have offices and facilities based already in Canberra," said Mr Somlyay.

He said the companies with offices in the ACT included; IPEX, Randata, JTech, Century Software, CCA Software.

"The prospect of jobs and investment for the Canberra region will be protected by the Department of Industry, Science and Technology who will monitor and enforce the commitment to involve Canberra IT firms in the technical support and development activities of the contract," he said.

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Further information: Graeme Hallet (Minister's Office) 02-6277 7060

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