ATO signals managed services shake up in new market approach

ATO signals managed services shake up in new market approach

Seeks centralised computing, end user computing and enterprise service management centre services.

Credit: Dreamstime

The Australian Taxation Office (ATO) will soon be approaching the market for a significant range of IT managed services as part of its multi-year IT Strategic Sourcing Program. 

These include centralised computing, end user computing and enterprise service management centre, plus any ancillary services. 

The IT Strategic Sourcing Program includes market sounding and analysis over 2021, a progressive approach to market in 2022 and then contract execution, transition and service transformation in 2023. 

ATO CIO Ramez Katf said the ATO’s IT Strategic Sourcing Program is all about modernising its IT outsourcing portfolio by developing market-aligned and more flexible bundles, building on the successful delivery of six new managed network services contracts in 2020.

“This is a reshape of how we get these services into the organisation. The technology ecosystem continues to evolve, and our outsourcing model needs to adapt and become future ready,” Katf said.

The ATO anticipates issuing one or more Requests for Information (RFIs) in June 2021, which will seek strategic dialogue with the market to inform bundle structure, scope, commercials, pricing approaches and procurement strategy; with a focus on what the IT ecosystem will look like from 2023.  

In June last year, the ATO took a $158.3 million bite out of the Digital Transformation Agency’s (DTA) $1 billion whole-of-government purchasing agreement with IBM, struck in 2018.

The new deal was awarded by the ATO for the ongoing support and maintenance of services on its existing IBM software products — which are widely used within the ATO — brings the procurement of those services under the DTA’s whole-of-government arrangements.

A $43 million deal was also awarded to Accenture Australia for system development, maintenance and transformation.

Under the contract, which is dated from 1 July to 30 June 2021, the consultancy giant is to deliver ICT professional services for the development, ongoing maintenance and transformation of the ATO’s indirect tax and income tax systems. It also covered performance testing.

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