The Australian Tax Office (ATO) is putting a multi-billion dollar outsourcing contract, which is currently held by EDS, out to tender.
The Australian Tax Office says it will open its IT outsourcing contracts worth over AU$1 billion to multiple suppliers, ending its 10 year single-supplier arrangement with EDS.
Government continues to shun colossal outsourcing contracts in favour of selective sourcing, while businesses display growing confidence in software-as-a-service -- however sustained skills shortages have plagued deployments, sparking interest in offshore options.
As the ATO prepares to break up its mammoth AU$1 billion IT outsourcing deal into three, the Tax Office is planning to isolate contract contenders in an effort to prevent sabotage by rival vendors.
The Australian Tax Office's past outsourcing contracts were too rigid to cope with technological change, according to its CIO, Bill Gibson -- so this time, business gets shotgun and IT will take a back seat.
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