ASX-listed Volante Group has secured a four-year renewal to its IT services contact with the Group 8 of Federal Government agencies. The extension could be worth as much as $160 million.
The original deal, which had an estimated value of up to $40 million per year, was due to run out in June 2005.
It has now been extended until 2009, which Volante Group CEO, Allan Brackin, said was proof that his company could compete successfully with the likes of IBM Global Services, EDS and CSC.
“It is testimony to the good work we do and, from our point of view, is a stepping stone to the future,” he said.
“We have been saying for some time that we can compete effectively with the multinationals in this space.”
While Brackin said Volante’s position as an Australian organisation was a minor consideration, he hoped it would get his company over the line in tight decisions.
“I would hope at the end of the day that if we’re equal or better then they [Government and corporate clients] will go with us,” he said.
“Kaz and ourselves have invested heavily in order to compete in this space and are now getting some reward.”
The Group 8 contract will continue to see Volante own, operate and support about 12,000 hardware devices including PCs, notebooks, printers and peripherals, servers and mid-range systems.
It covers 350 sites across Australia and includes a full range of consulting, helpdesk, hosting and technical services.
The renewal is thought to be worth slightly less per year than the original contract because of the Government’s controversial decision to abolish the Aboriginal and Torres Straight Islander Commission (ATSIC).
The remaining members of Group 8 are: the Department of Agriculture, Forestry and Fisheries; the Department of Environment and Heritage; the Australian Broadcasting Authority; the Australian Communications Authority; the Australian Public Service Commission; and the Civil Aviation Safety Authority.
Brackin said his attention would now be focused on winning a significant portion of the upcoming South Australian government contracts.
The Group 8 decision would also increase the company’s stock with potential major corporate customers, he said.