HP beats out IBM for ATO deal

HP beats out IBM for ATO deal

Summary: After a lengthy negotiation period, the Australian Taxation Office (ATO) has chosen a preferred tenderer for its centralised computing bundle.


After a lengthy negotiation period, the Australian Taxation Office (ATO) has chosen a preferred tenderer for its centralised computing bundle.

HP Enterprise Services (formerly known as EDS) beat out IBM as preferred tenderer for the lucrative deal. EDS was previously the ATO's prime IT supplier, providing end-user computing and managed network services as well as centralised computing. However, that large contract was broken up into three smaller bundles. Optus won the managed network services portion and the end-user portion went to Lockheed Martin.

The centralised computing contract is set to include the provision and support services for mainframe, midrange data warehouse, storage and secure gateway, as well as data centre facilities, networks and management.

The ATO will now workshop a final agreement with its preferred tenderer and expects to sign contracts in December.

While HP has come out on top in this instance, the tax office has stipulated that it may reinstate other shortlisted tenderers if it can't reach a "value for money proposition with the preferred tenderer".

Other shortlisted tenderers included IBM Australia, CSC Australia and Lockheed Martin Australia. The latter two withdrew their candidacy late last year.

Topics: Hewlett-Packard, IBM, Legal, Outsourcing

Luke Hopewell

About Luke Hopewell

A fresh recruit onto the tech journalism battlefield, Luke Hopewell is eager to see some action. After a tour of duty in the belly of the Telstra beast, he is keen to report big stories on the enterprise beat. Drawing on past experience in radio, print and magazine, he plans to ask all the tough questions you want answered.

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  • And on the day this big win, worth hundreds of millions of dollars was announced, HP Enterprise Services in Canberra was busily retrenching people. HP don't retrench people when they lose a contract or close a factory, they view it as something that should be done regularly, every three months. All so that some manager in Adelaide comes in under budget and gets a big, fat bonus at the end of the HP financial year. Yes, HP are not interested in providing good service to our customers; they are only interested in saving a dollar here and a dollar there without any thought to the long term damage it is doing to the company or its customers.

    No, I am not a disgruntled ex HP employee... but I have seen many good people retrenched without any effort being made to redeploy them, yet new positions were created a month or two later and filled. These were people who gave an awful lot of themselves to this company and our customers. I hope one day that Fair Work Australia looks closely at the actions of HP.