ATO signs AU$300 million outsourcing extension

The Australian Tax Office (ATO) has extended its information and communications technology (ICT) outsourcing agreement with services heavyweight EDS in a two-year deal worth AU$300 million.EDS said today the contract extension -- due to expire in June 2008 -- built on a six-year deal signed in June 1999.

The Australian Tax Office (ATO) has extended its information and communications technology (ICT) outsourcing agreement with services heavyweight EDS in a two-year deal worth AU$300 million.

EDS said today the contract extension -- due to expire in June 2008 -- built on a six-year deal signed in June 1999. The company will continue delivering ICT infrastructure services in support of the operations of the ATO, itself in the midst of a massive change program to re-engineer the way it delivers services to the public.

The ATO, headquartered in Canberra, employs more than 20,000 people nationwide.

EDS said it faced "major challenges" during initial contract, including implementing Y2K contingencies and the phased implementation of the goods and services tax (GST).

In January, the ATO extended its change program from three years to four years. The AU$400 million-AU$450 million partnership with Accenture and so-called "independent assurance partner" Capgemini, is also set to expire in 2008.