Kaz clinches top Federal Government supplier spot

Kaz Technology Services has secured top spot in a list of the largest suppliers to Federal Government, according to a new report.

The local integrator beat multinational giants EDS and IBM as well as its parent company, Telstra, to rank first on the top 100 supplier list, according to analyst firm, Intermedium.

Principal for research and product development, Kim James, said the result was largely due to Kaz's $181 million contract with the Department of Defence. In total, Kaz recorded $269.78 million in new contracts. It was ranked 10th on the last annual list.

"Kaz's defence win was the single largest contract recorded over the past year," James said.

Another improver was Dimension Data, which climbed from 22nd to seventh over the same period thanks to a broader range of deals. The integrator's new Federal Government contracts were worth $84.86 million.

One of the biggest movers and shakers among local suppliers was Canberra-based Dataflex, which skipped from 35th to 19th. Its new contracts were valued at just over $25 million.

In total, Federal Government contracts were worth $3.2 billion in the year to June 2006. The top 25 suppliers captured 61 per cent of the business with Kaz, Telstra and IBM accounting for almost a quarter of total spending. James said government agencies had placed a strong focus on IT services during the past year.

"More than half of the total contract value was in IT services. It's a big growth area that has been increasing steadily since we started tracking contracts in 2001," she said. "This wasn't just the big outsourcing contracts but also labour hire and staff augmentation."

Staff recruitment and consulting firms including Paxus, Peoplebank and Wizard Group all bettered their position on the top 100 ladder.

"I think it's reflective of the skills shortage affecting the industry. It also shows the government's willingness to bring private sector companies into its strategies," she said.

Potential suppliers could expect to see a raft of larger contracts come through this year, according to James, starting with the Department of Multicultural Affairs and the Arts' Systems for Peopleproject.