ASG inks $80m WA shared services deal

Perth-based IT services group ASG yesterday said it had inked a five-year shared services contract renewal with the Western Australian Department of Treasury and Finance, although it is unclear how the deal relates to a previous 10-year arrangement inked in 2006.

In January 2006, ASG and sub-contracted partner CSC won an $87.8 million, 10-year contract with the WA State Government to provide services relating to its whole-of-government shared corporate services arrangement. The company is led by chief executive Geoff Lewis.

Since that time, and after a damning auditor report on the project, the state government has reworked the project and brought it under the Department of Treasury and Finance. ASG group chief officer of Sales and Strategic Operations, Murray Rosa, yesterday did not immediately return a call asking for background on how the two deals related.

However, in a statement, ASG said the new deal was worth at least $16 million a year over five years, with scope for an additional $20 million in added project services to be bolted on top.

The company noted the contract covered "a comprehensive range of IT services", in addition to application, technology renew and extended professional consulting services.

In his company's statement, Rosa emphasised ASG had achieved a strong momentum in securing contracts in the new financial year. "We remain well positioned to deliver strong earnings growth in financial year 2011 and beyond," he said, driven by strong contract wins, three recent acquisitions and a solid pipeline of contract opportunities.

In 2010, ASG has won contracts with the Department of Prime Minister and Cabinet ($41 million), Western Power ($35 million), the WA Department of Education ($23 million), Vodafone Hutchison Australia (unknown) and the Department of Broadband, Communications and the Digital Economy ($13 million), according to the company's statement, and it has an "opportunity pipeline" in excess of $626 million.