Health Department of Australia goes out to tender



Australia’s Department of Health is on the market for a new IT outsourcing partnership. Their partner for the last fourteen years has been IBM who signed a five year agreement in 2000 for $350 million.

The federal agency, according to ITNews, has renewed its contract with IBM for the provision of IT infrastructure and support services six times in the last fourteen years. IBM has been paid well over half a billion dollars from the partnership in that time.

On Friday 30th May 2014, the Health department publically invited offers from the industry to take over IT infrastructure and support services for the agency and form a new partnership.

The department is looking for a “new approach” to the provision of the services. This new approach would focus on outcomes and cut down on costs associated with the traditional delivery of IT outsourcing.

It specified wanting to offer more flexibility to the supplier in how the services are delivered; a focus on meeting objectives and tying payments to the delivery of the outcomes rather than cost of inputs; and management and identification of risks in a way that “does not create unreasonable premium pricing” Read more:,health-finally-takes-ibm-outsourcing-deal-to-tender.aspx#ixzz33XjbFlaU  
June 3, 2014

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

1 + 3 =