NSW Transport to Sign Two Major Outsourcing Deals



nswFollowing from a tender published in June last year, Transport for NSW is set to sign two large infrastructure outsourcing contracts. The tender is part of the Next Generation Infrastructure Services (NGIS) project to improve the performance, scalability, consistency and efficiency of IT services and infrastructure. The aim of the NGIS project was to replace existing IT sourcing contracts with ones that will ensure:      
  • Scalability, consistency, efficiency, effectiveness and improved risk management across NSWs transport cluster.
  • Improve IT performance with enhanced stability and reliability, faster fulfillment and speed of fixes and greater cost transparency.
  • The commercial flexibility to allow for the adoption of Cloud and other delivery models, private sector participation, and other new ways of working, all without penalty.
  The new deals, according to a recent report in ITNews, are estimated to be worth $150 million up front and $100 million in operating costs each year. “The expiry of key agency IT infrastructure services outsourcing contracts has created a once in a generation opportunity to consolidate the Transport cluster onto shared state-of-the-art IT infrastructure services platforms and leverage the scale of the cluster to reduce costs,” the agency revealed in tender documents. 25 IT companies responded to the June 2013 NGIS tender request, alongside Indian-based outsourcers Infosys, HCL, Tata and Wipro, plus global giants HP, IBM, Lockheed Martin and Unisys. Earlier reports in the media suggested that IBM would be the main contractor involved with a deal worth $10 Billion over 10 years. Though there was some doubt due to a debacle with the Queensland government over its health payroll system.  
July 24, 2014

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