Telstra beats out Fujitsu, Accenture, Lockheed on Defence IT spending

The Australian Department of Defence has spent more with Telstra than any other IT or telecommunications company in the last financial year, as the company rolls out the Defence terrestrial communications network.

Telstra has topped the list of companies being paid by the Australian Department of Defence for IT services and contracts, according to a list published by the agency.

Each financial year, the Department of Defence spends approximately AU$1.6 billion on IT systems and infrastructure across the entire Defence organisation.

In response to a question on notice from June's Budget Estimates hearings, the Department of Defence has provided a list of its tier one vendors for the CIO group within the department.

Telstra topped the list at over AU$140 million for the last financial year up to the end of May. It comes as Telstra was contracted to build an AU$1.1 billion terrestrial communications network out to 430 sites for the department. The project is scheduled to be completed mid-2016, when Telstra's role will switch to maintaining the network.

In second place was Fujitsu at AU$86 million. The company in February last year was awarded a three-year extension on its distributed computing services contract with Defence for AU$170 million.

The third place went to Accenture at AU$81 million. Accenture has a five-year human resources transformation project signed with the department in 2012. The company also secured a number of Defence contracts for services throughout the year, including an AU$13 million contract for IT consultation services, an AU$10 million project management contract, and an AU$19 million software maintenance and support contract, according to AusTender.

Lockheed Martin was fourth at AU$77 million. The company won the centralised processing services contract worth close to AU$1 billion in May last year. Lockheed Martin will be consolidating 280 datacentres into 11 locations domestically, and three internationally.

As of the end of May, the agency reported spending the following amounts with the various tier one vendors ranked in order:

  • Telstra: AU$140,507,215
  • Fujitsu: AU$86,560,512
  • Accenture: AU$80,896,030
  • Lockheed Martin: AU$76,749,573
  • Unisys: AU$35,856,574
  • IBM Australia: AU$23,975,050
  • Data#3: AU$11,248,873
  • ABB Enterprise Software: AU$10,041,189
  • CSC Australia: AU$8,819,552
  • BAE: AU$7,955,683
  • SAP Australia: AU$7,892,988
  • Oracle: AU$6,754,877
  • Hewlett Packard: AU$6,398,504
  • Microsoft: AU$762,250

The total for the 14 vendors was AU$504,418,876.

ZDNet revealed in April that 42 Defence staff members had left since February as a result of the Lockheed Martin deal, with the department flagging at the time that more would go over the coming months.