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Publication: The Australian

Section: Australian IT

Date: 08 December 2010

Health Dept and IBM revisit IT outsourcing deal

Karen Dearne

Article excerpt:

IBM Australia has kept its stranglehold on the federal Health Department, with a renegotiation of its service agreement over the next four years. Briefing documents for the incoming Gillard government show former finance minister Lindsay Tanner gave the department approval to open discussions on a contract extension. IBM has provided ICT services to Health since the department outsourced its IT infrastructure to the industry giant in 1999. The current contract, estimated at $126.6 million, is due to expire in June 2011. The agreement has twice been renegotiated -- in December 2003 and again in December 2008.

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