The New South Wales government has established a memorandum of understanding with Infosys and Unisys to set up shared services for the state's government agencies.
This will mean that Infosys and Unisys will replace the shared services that ServiceFirst is currently providing to agencies including Treasury, Office of Finance and Services, Planning and Environment, and Premier and Cabinet.
NSW Minister for Finance and Services Dominic Perrottet said the move towards sourcing shared services from the private sector is aimed at improving service delivery and quality, and to ensure value for money for government and taxpayers.
"A scalable model of shared services gives government flexibility and choice, as we are able to more easily adopt new and emerging technologies," he said.
"The two new delivery partners will bring specialist experience as well as knowledge of industry benchmarks and standards and will provide enhanced business practices.
"Once we transition to the new delivery model it is hoped that there will be greater consistency for shared services across the sector, as the new service providers will have performance and delivery benchmarks built into their contracts."
Since March, the state government has been on a hunt for a private partner to support ServiceFirst, which currently provides back-office support for various government agencies, including end-to-end transactional services, human resources, IT, analysis, financial reporting, and compliance. It also combines 350 staff servicing, 46 clients, and approximately 7,500 people.
During the proposal period, the government received more than 50 applications.
The MOU is expected to be finalised and signed by all parties before Christmas. A decision on the final arrangements will be made in April following detailed due diligence and contract negotiations.
ServiceFirst will continue to provide shared services for agencies while the new service contracts are finalised.
The move to outsource government back-office services follows the Victorian government's announcement in May to invest AU$6 million to outsource the state's IT shared services provider CenITex.