EDS, Kaz stripped from ATO shortlist

EDS (now known as HP Enterprise Services) and Fujitsu-owned Kaz Group have been taken out of the running for the Australian Taxation Office's $60 million a year end-user computing deal.

HP Enterprise Services (formerly known as EDS) and Fujitsu-owned Kaz Group have been taken out of the running for the Australian Taxation Office's $60 million a year end-user computing deal.

CSC, then EDS, Kaz, Lockheed Martin Australia and Unisys had been put on a shortlist for the deal in July this year. The ATO announced today that only CSC, Unisys and Lockheed Martin remained to contest the contract.

EDS has been servicing the ATO for its desktop needs for a decade. The ATO decided in 2007 to break up EDS's stranglehold on the agency's IT contracts following internal reviews by Boston Consulting Group. It broke EDS's $1 billion whole-of-agency deal into a managed network services contract, an end-user computing contract and a centralised computing contract.

In June, ATO announced that the third contract, for managed network services, had been granted to Optus, worth $186.5 million over four years.

The plan was to have transitioned the end user and centralised computing components in time for June next year when the existing contracts with incumbent EDS expired. However, government policies saw the timeline extend.

EDS received an extension for the centralised computing and end-user components until June 2012. The final successful service provider for the end-user computing deal is expected to be announced in mid-2010.

Currently, HP Enterprise Services (EDS) is carrying out a desktop refresh, rolling out 25,000 computers from new parent HP to the agencies' employees.

Now HP Enterprise Services has been taken out of the running for the end-user deal, the only part of its once $1 billion outsourcing deal it could keep is the centralised computing portion, worth around $160 million a year. It has been shortlisted along with Lockheed Martin, CSC and IBM.