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Three multinationals snare the bulk of government contracts

Three multinationals snare the bulk of government contracts

Research released today shows 20 ICT suppliers to the federal government have signed contracts totalling $655.5 million during the first four months of 2005.

But three multinational vendors - Accenture, EDS and CSC - accounted for more than 80 percent of all contracts signed with federal government departments and agencies from January to April, according to research firm interData.

Accenture signed deals worth $266.57 million including a contract with the Australian Taxation Office for $254 million. Inked in January this contract runs for three years until June 2008.

Accenture also inked a deal in March with the Department of Family and Community Services for $9.1 million which runs until June 2006.

EDS extended its contract with the Customs Department. This $193 million add-on extends the contract until June 2007.

New contracts signed by EDS include work with the ATO.

Meanwhile, CSC signed a $62 million extension to an existing contract with Centrelink, making up the bulk of the $70 million contracts signed with the federal government during this period.

InterData's information services director John Karbowiak said the top 20 vendors did experience higher levels of activity compared to last year.

However, he said it has to be viewed over a three- to five-year period to understand ICT expenditure at the federal level, because most contracts span multiple years.


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