ATO confirms $186.5m Optus deal

The Australian Taxation Office today has confirmed Optus as its managed network services provider in a deal worth $186.5 million over four years — up to $55 million less than previously indicated by the agency.

The two have been negotiating the final contract since the ATO flagged Optus' selection in May. At the time, ATO said it typically spends around $60.5 million annually on such services; however, the deal inked will see Optus rake in around $46 million a year.

The Optus win represents the first arm to be broken off from the Tax Office's agency-wide IT outsourcing contract, which it inked with EDS in the 1990's.

The ATO's end-user computing deal, worth around $60 million a year, is due to be signed by March 2010, with CSC, HP/EDS, Fujitsu-owned Kaz Group, Lockheed Martin Australia and Unisys still in the race. The mainframe contract, worth around $160 million per year, is due be signed by mid-2010 and has been whittled down to Lockheed Martin, CSC, IBM and incumbent EDS.

Optus said it will implement a new IP network for the ATO, with up to 70 offices to be placed on its Evolve network. The telco said it hoped to move the ATO's 23,000 staff to IP-based telephony services. A timetable was not specified.

The telco will also manage the ATO's call centre, and implement a call routing system to distribute the agency's incoming calls across its national network of call centres. Optus' ATO win follows the recent contract it signed with Australia and New Zealand Banking Group, worth $500 million over five years.

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Optus Managed Services Anonymous -- 17/06/09

Didn’t Optus move their Optus Facilities Management Services contact centre from Brisbane to overseas to Asia in late 2006?

Secondly, Optus is part owned by SingTel, a Singaporean company.

Mmmm.... In seems not only jobs are moving overseas but our hard earned tax dollars we to keep the ATO running!

I sincerely hope the ATO put clauses in the SLA's before they signed, to keep the Optus FM contact centre and anything else job related that Optus will use for service delivery, in Australia, thereby protecting Australian jobs...

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@Optus Managed Services Terry -- 17/06/09 (in reply to #320143841)

"Didn�t Optus move their Optus Facilities Management Services contact centre from Brisbane to overseas to Asia in late 2006?"

I believe the Brisbane office may have been moved, but the people in Sydney are fully capable of doing the job.

"Secondly, Optus is part owned by SingTel, a Singaporean company."

Wholly owned by Singtel, but you can buy shares in Singtel if you like.

"Mmmm.... In seems not only jobs are moving overseas but our hard earned tax dollars we to keep the ATO running!"

You're assuming this will be managed offshore, which due to the sensitivity of the information contained within it I severely doubt it, this will be something managed in Australia.

"I sincerely hope the ATO put clauses in the SLA's before they signed, to keep the Optus FM contact centre and anything else job related that Optus will use for service delivery, in Australia, thereby protecting Australian jobs..."

Optus has 10000+ Australian employees, and contracts like this will result in the hirign of more Australian employees. You think using Optus isn't protecting Australian jobs? Well unlike another unnamed telco Optus has overall expanded it's employee base, not diminished it.

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Optus Managed Services Anonymous -- 17/06/09 (in reply to #320143857)

"I believe the Brisbane office may have been moved, but the people in Sydney are fully capable of doing the job."

So Brisbane people are not capable of doing it? Is that why their jobs went offshore?

"Wholly owned by Singtel, but you can buy shares in Singtel if you like."

Even worse! Now all of our tax dollars are going into the coffers of a foreign owned company.

"You're assuming this will be managed offshore, which due to the sensitivity of the information contained within it I severely doubt it, this will be something managed in Australia."

Such a pity that a government department has to force the issue and put clauses into the contract (in the SLA's) to ensure it will be managed in Australia. If the ATO hadn’t done so, Singtel management would have managed this offshore to maximise profits.

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@Optus Managed Services Terry -- 17/06/09 (in reply to #320143915)

"Singtel management would have managed this offshore to maximise profits."

umm no, Singtel didn't get the deal, Optus did. Sure Singtel is the parent company but that doesn't mean everything Optus do gets handed off to them, far from it.

You seem to be clutching at the "Optus is bad because of Singtel" argument, don't you think that's getting a little old? Someone might accidently call you Sydney :-)

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soon terry Anonymous -- 17/06/09 (in reply to #320143987)

terry, once optus sells their assets to the australian government for a seat at the nbn table, at telstra's expense, these shrewd telstra shareholders won't even have the race card left to play. then what?

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