South Australia aims to cut costs with CSC deal

State government expected to save $11 million a year in IT costs

South Australia’s government will outsource end user computing under a contract with CSC Australia.

The government announced today that it had struck an agreement with CSC that will see the company provide and support desktops, laptops and tablets, with the agencies and departments set to no longer own and manage physical devices.

The government said the seven-year deal will save it up to $11 million in annual IT costs.

CSC will set up a new office in Adelaide as part of the agreement. The government set the move would overall create an additional 400 jobs, including for up to 30 GM Holden workers would be reskilled. The government said the equivalent of 180 full-time public sector staff will be affected by the contract. The staff “will have the opportunity to express their interest in a position with CSC,” the government said.

The state government said that CSC would spend $5 million establishing the new office, with its workforce to grow from 100 to 700 over the life of the deal.

“The broader economic and employment benefits that will flow from CSC winning the contract are significant,” SA Premier Jay Weatherill said in a statement.

“They have committed to establish a local partner network for small to medium local enterprises across the state that will support this new contract. Collectively, these SMEs will employ 100 South Australians and invest over $30 million in job creation over the contract period.”

The new deal came out of a mid-2015 call from the state government for expressions of interest from the private sector for the revamp of government ICT. At the time, SA was spending around $260 million on cross-government ICT every year. The EOI period was followed in 2016 by a request for solution process for end user computing.