Health dumps IBM, Accenture for $242m ICT contract

Australia's Department of Health (DoH) has replaced IBM as its prime ICT infrastructure and support services contractor and awarded a five-year, $242 million contract to New Zealand-owned IT services provider Datacom.

The deal will also end DoH's contract with Accenture for the support of the enterprise data warehouse (EDW) that Accenture built in 2012 to house health data from the department and federal agencies such as the Independent Hospital Pricing Authority and the Australian Commission on Safety and Quality in Health Care.

Accenture won the tender to build the EDW in late 2011, as well as a contract to support the system until June 30, 2015, for just on $108.5 million.

IBM has provided hardware and software infrastructure support to the department since 2000 through a series of five-year contracts, the last one of which was awarded in 2010 for just over $100m.

In the past, DoH has not gone out to tender for its outsourced support requirements, repeatedly awarding the contract to IBM. However, in May last year it issued an open request for tender, which specified a different approach from previous contracts.

In a statement, DoH secretary Martin Bowles said the department approached the market seeking a departure from traditional IT services outsourcing models.

“This new agreement is structured to provide an outcomes-based fully managed service, with consumption-based pricing, and a strong focus on service delivery,” he said.

“This approach empowers Datacom to determine the best way to deliver the services, offering autonomy but also responsibility for the achievement of the outcomes.

“Consistent with a fully managed service, the contract includes the full provision, maintenance and refresh of all hardware and software assets necessary to deliver the contract outcomes.”

Datacom, which was established in New Zealand 50 years ago and has offices throughout New Zealand, Australia, Malaysia and the Philippines, has a large federal government portfolio including services for Australia's Customs and Border Protection Service, the Department of the Environment, the Australian Taxation Office, the Australian Competition and Consumer Commission, the National Health and Medical Research Council and Airservices Australia.

It also has extensive services for healthcare providers and organisations in New Zealand, including the Accident Compensation Corporation and the New Zealand Blood Service.

Last year, it took a 20 per cent stake in the Australian clinical software firm SmartWard as the first step in a new healthcare solutions unit.

Datacom Group CEO Jonathan Ladd said in a statement that the company had gone through a fiercely competitive process.

“This new partnership model, with Datacom delivering agreed outcomes, as-a-service, demonstrates leadership and a service delivery evolution by the Department of Health,” Mr Ladd said.

“Securing the Department of Health appointment recognises our significant track record, of public sector delivery, advanced technical capabilities and our long term commitment to the federal government market.”

Posted in Australian eHealth

Tags: IBM, Datacom, Accenture

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