​Datacom wins AU$242m contract with Department of Health

Datacom will replace IBM Australia and Accenture to be responsible for delivering a fully managed service for the Department of Health as part of a five-year contract.

Datacom has won a five-year contract with the Australian Department of Health to provide IT infrastructure and support services.

The contract, valued at approximately AU$242 million, follows a request for tender process, which commenced on May 30, 2014. Under the contract, Datacom will be responsible for delivering a fully managed service, including the full provision, maintenance, and refresh of all hardware and software assets within the department.

The Datacom contract will replace existing IT services contracts that the department has with IBM Australia and Accenture, which have been providing support for the agency's enterprise data warehouse. The contract with both vendors will expire on June 30, 2015.

Department of Health Secretary Martin Bowles said the department is looking to move away from traditional IT services outsourcing models.

"This new agreement is structured to provide an outcomes-based fully managed service, with consumption-based pricing and a strong focus on service delivery. This approach empowers Datacom to determine the best way to deliver the services, offering autonomy but also responsibility for the achievement of the outcomes," he said.

The move forms part of the Australian government's broader digital strategy. Under the revised cloud policy released last October by the government, agencies must adopt cloud where it is fit for purpose, provides adequate protection of data, and delivers value for money. At launch, Datacom was named as one of the first 49 companies added to the panel.