CenITex warned on contracts

Victorian shared services provider CenITex has been slapped on the wrist in a recent Victorian audit report for failing to follow best practices when setting up agreements with the agencies it serves.

Victorian shared services provider CenITex has been slapped on the wrist in a recent Victorian audit report for failing to follow best practices when setting up agreements with the agencies it serves.

"At the end of its first year of operation, CenITex had not finalised an agreed MOU [memorandum of understanding] or specific corporate service level agreements with their six clients," the Victorian Auditor-General report said. The report was released earlier this month.

CenITex commenced operations on 16 July 2008. It manages enterprise tools such as email and infrastructure such as desktops for six government organisations: the Victorian Departments of Transport, Planning and Community Development, Premier and Cabinet, Primary Industries, Sustainability and Environment as well as Treasury and Finance.

By 2012 it wants to be managing the desktops for another seven agencies. CenITex CEO Peter Blades had said that the Department of Innovation, Industry and Regional Development was next on the list.

The audit report said that for outsourcing arrangements with the agencies to work, there needed to be service level agreements or a memorandum of understanding set up to define parameters of service.

CenITex replied to the audit, saying that it had created a business services catalogue and service level definitions.

"These documents together with customer purchase orders form the basis of the agreement between CenITex and its customers," CenITex said. It added that memorandum of understanding was in draft stage which would "put more structure around the relationship and the obligations of each party".

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