The Australian Taxation Office has selected a shortlist of suppliers who will bid for the last and largest of its three outsourcing contracts, a high-end computing deal believed to be worth a total of $800 million over five years.
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.
Telstra has signed a contract with services giant IBM to manage all of the telco's internal IT systems until 2012.
update: The Australian Customs Service has dished out the first slice of work resulting from the lapsing of a giant AU$550 million outsourcing deal with EDS, awarding a AU$160 million mainframe processing contract to IBM.
EDS appears to have jumped the final hurdle, knocking Hewlett-Packard out of the race for one of the juiciest South Australian government outsourcing contracts, distributed computing support services.
As mega outsoucing deals begin to lose their shine, is it time for selective sourcing to take centre stage?
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