Australian public health IT outsourced to IBM Global Services in million dollar contract

Canberra 23 September 1999The Australian Federal Government has selected IBM Global Services Australia to provide Information Technology services to the Federal Government Health Group Agencies in a contract worth about $US230 million ($AU350m) over five years. The agreement covers a wide range of IT infrastructure and services currently delivered "in house" and represents a strategic decision by the Health Group Agencies which will allow them to gain faster access to advances in technology, focus on their core function of improving health services to all Australians and assist in developing efficiencies and improved client services through e-business.


The Health Group Agencies include the Department of Health and Aged Care; the Health Insurance Commission and Medibank Private Limited which is the Federal Governments' private health insurance agency. Mr. David Thodey, General Manager of IBM Australia and New Zealand welcomed the announcement by the Minister for Finance and Administration, the Honourable John Fahey MP, and said the contract was awarded after a very competitive and thorough tendering process against EDS and CSC.

IBM Global Services will utilise its leadership in offering end-to-end IT solutions and its global experience in the Government sector to provide the Health Group Agencies with an IT backbone to support their organisational goals and strategies, as stated by Mr. Thodey. Under the contract IBM Global Services Australia will be responsible for:

  • Mainframe and datacentre management
  • Midrange
  • Desktop (8,000 approximately)
  • Local Area Networks (LANs)
  • Telecommunications, in conjunction with joint venture partner Advantra
  • Cross Platform Services
  • Help Desk & Problem Management
  • Bulk Print & Card Production

Mr Thodey said that the Health Group Agencies will also have access to IBM's global leadership in e-business and its expertise in the health care industry, including access to IBM's suite of comprehensive, secure, end-to-end technology solutions for health care organisations. These solutions are designed to reduce the duplication of services and provide access to valuable clinical knowledge, across the scope of health services.

The five year agreement has two two-year extensions and a transition period of 18-22 weeks and contains an extensive Industry Development Programme. Key sub-contractors include Advantra, Telstra, Cable & Wireless Optus, ASI Solutions, Hallis Personnel Services, Mail Management Australia and Interim Technology Corporate Education.

IBM Global Services Australia forms a joint venture between IBM Australia, Telstra and Lend Lease and is part of the worldwide IBM Global Services group which is the world's largest information technology services provider, with 1998 revenues of approximately $29 billion. Services is the fastest growing part of IBM, with more than 130,000 professionals operating in 160 countries. IBM Global Services integrates all of IBM's capabilities - services, hardware, software and research - to help companies of all sizes realise the full value of information technology.

Leslie Versweyveld

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