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Third major NSW corporate services overhaul in motion

by Michael Read •
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The NSW Government’s Justice Cluster has approached the market twice this week, signalling the beginning of its Corporate Services rationalisation. 

These follow an earlier major approach to market process (EOI followed by Restricted Tender) at Transport for NSW for its ‘Next Generation Infrastructure Services’ (NGIS).

The NGIS EOI attracted 25 bidders including CSC; Fujitsu; Hewlett Packard; IBM; Lockheed Martin; Logica CGI and Unisys as well Optus; Telstra; Dimension Data; NextGen Group; NEC IT Services; NetApp and UXC Connect.  Tata Consulting Services; Tech Mahindra; Wipro; HCL and Infosys also responded to the EOI. It is understood the EOI was followed by a restricted tender process with less than ten of these invited to participate.

The Justice Cluster, made up of 10 agencies and 2 independent offices, is the third largest in NSW Government with 40,000 full-time equivalent employees and over 90,000 volunteers, according to the tender documents. 

Its staff are located in key agencies such as the Department of Attorney General and Justice (which contains Corrective Services NSW and Juvenile Justice NSW as major Divisions) as well the NSW Police Force, NSW Fire and Rescue, NSW Rural Fire Service and the State Emergency Service NSW.  Smaller agencies within the Justice cluster include the NSW Crime Commission, Office of the Director of Public Prosecutions, the Judicial Commission and NSW Legal Aid.

Both the Health Cluster and the Education Cluster have already streamlined their corporate service delivery in response to the Whole-of-Government Corporate Shared Services Reform Program (CSSRP). The Justice Cluster is initiating its Justice Shared Corporate Services (JSCS) Program under the same Program.

In the 2013-14 Budget, $46 million in Capital Expenditure (CapEx) was allocated to the Department of Attorney General and Justice, (DAGJ) for a business transformation project for shared corporate services in the Justice cluster over the three years to 2017. Of this budget allocation, $7.8 million of was earmarked for 2013-14.  (See Intermedium’s Budget IT for more information on NSW Government ICT funding).

Expression of Interest for ERP System Software as a Service (SaaS) Solution

The Cluster’s ERP systems may be consolidated into an as-a-service offering, according to an Expression of Interest (EOI) released on 7 November 2013 by the Department of Attorney General and Justice.

The JSCS Reform Business Case recommends transferring the thirteen agencies within the Justice cluster to a standard ERP solution for the cluster based on SAP and involving no more than two physical instances. The Business Case recommends that agencies transfer to the new ERP system in stages.

However, the EOI makes it clear that the project may not progress past the EOI stage.

“The cluster currently has a variety of ERP systems that includes Mincom, SUN financials and Aurion HR. There are also two SAP ECC6.0 implementations that could be enhanced to meet this outcome without the requirement for a new SAP build.”

Despite the Business Case assuming that the new ERP solution would be built out of existing resources, “recent interest by NSW Government in cloud and managed service offerings” has resulted in the approach to market, according to the EOI.

The NSW Department of Trade and Investment, Regional Infrastructure and Services (DTIRIS) completed a $14 million project in late 2012 to move its consolidated ERP system on a software-as-a-service basis. However, with only 4,778 FTEs, the total size of DTIRIS is equivalent to just 11.9 per cent of the NSW DJAG cluster. 

Request for Tender Justice Shared Corporate Services Functional Facilitators

The approach to market on 4 November for ‘Justice Shared Corporate Services Functional Facilitators’ reveals additional information pertaining to how the Justice Cluster intends to implement the JSCRP Program.

Cluster wide Functional Leadership Teams (FLTs), a JSCS Executive Program Group, and a Corporate Services Committee (CSC) have already been established to help guide the implementation of the initiatives outlined in the JSCS Program.

The JSCS Program will require the implementation of “numerous, highly specialised, complex works that have not been undertaken on a cluster wide scale in DAGJ”, according to the tender documents.

The JSCS Program includes significant ICT related activity:

  • Standardised processes in ICT and Asset Management functional areas based on best practice;
  • Cluster wide analytics, performance monitoring and reporting to support effective information management;
  • Consolidation of infrastructure to support interoperability and accessibility within cluster wide ICT solutions;
  • Formulation of strategies and delivery of infrastructure consistent with the NSW Government’s ICT strategy; and
  • Consolidation of the cluster’s ERP systems.

The tender aims to find a Functional Area facilitator who will manage a process to determine the Cluster’s asset management, procurement, finance, HR and ICT functions into a single unit

According to the tender documents, the Functional Area Facilitators will be required to:

  • Facilitate meetings of the FLTs;
  • Provide strategic leadership to each functional area;
  • Provide direction and input to the FLTs;
  • Facilitate related work outside of FLT meetings; and
  • Provide support to ensure the HSCS program delivers the outcomes required for the specific functional area within the SCS program portfolio.

Related Articles:

Outsourcing trend among smaller agencies likely to accelerate

NSW Transport cluster to overhaul infrastructure contracting

IT systems fail to support FACS service delivery

For more information, please contact the Editor (02) 9955 9896.

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  • NSW
  • IT Services
  • Justice
  • corporate services
  • Corporate Services Committee
  • Enterprise Resource Planning (ERP)
  • NSW 2013-14 Budget
  • NSW Corporate and Shared Services Reform Program
  • NSW Department of Trade and Investment
  • Department of Trade and Investment
  • Regional Infrastructure and Services
  • NSW Justice Cluster
  • Transport for NSW