IBM Australia has struck a five-year whole-of-government agreement with the Digital Transformation Agency (DTA). 

After six months of negotiations, the federal agency announced that the second iteration of their agreement with the tech giant will provide essential products and services for digital government. 

In a statement, the DTA stated that the new deal will provide “greater flexibility for agencies to transfer assets and enable reuse opportunities across government, and streamlines contracting to reduce the time, effort and resources required throughout the procurement process”. 

DTA CEO Chris Fechner stated that the new agreement offers important continuity for the commonly used business systems which support critical government services that serve Australians. 

“This arrangement is the right fit for the current context and requirements for its participating agencies,” he said. 

“Through the Commonwealth negotiating as one entity, the contract will continue to give government agencies better value for money and more flexibility when sourcing commonly used IBM products and services with a focus on essential government requirements.” 

The new arrangement with IBM included systems needed during the response to the pandemic and disaster events.  

The deal also highlighted the utilisation of training and certifications to support digital capability across government. 

Aside from hardware and software plans, the DTA and IBM are also discussing opportunities to use emerging technologies such as quantum computing and artificial intelligence. 

“Under this arrangement, IBM Australia will continue supporting the Australian government in their work to drive accelerated adoption of innovative technology to modernise government services,” IBM Australia Managing Director Nicholas Flood said. 

InnovationAus.com reports that the deal, which is estimated to be around $725 million, is 25 per cent less than the first arrangement with IBM back in 2018. 

While the previous iteration of the agreement was initially estimated to be worth $1 billion, ITNews revealed that the expenses under the agreement had ballooned to $2 billion in value prior to the end of the five-year contract. 

The arrangement was negotiated and signed by the DTA, the Australian Taxation Office, Department of Defence, Department of Home Affairs and Services Australia.  

With AAP 

Eliza Sayon

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Eliza is a content producer and editor at Public Spectrum. She is an experienced writer on topics related to the government and to the public, as well as stories that uplift and improve the community.

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