Victoria’s Department of Human Services (DHS) is in the final stages of decommissioning its Fujitsu-managed IT infrastructure, with the process due to be completed by 30 June 2013.
DHS has just extended its contract with Fujitsu for the seventh time to cover the phase-out period.
Fujitsu has been in charge of DHS’s outsourced infrastructure management since it took over the contract at the agency in April 2006. Prior to that DMR Consulting had held the contract since 2001 for a value of approximately $19 million.
Over the seven years from 2006 to 2013 the contract will have been worth $43.9 million to Fujitsu. The lifetime value of the contract, including the period under DMR Consulting, comes to $62.9 million.
A spokesperson for the Department could not confirm whether or not it would approach the market to replace the services currently provided by Fujitsu.
He did add, however, that DHS was also in the process of decommissioning its legacy Ingres applications by 30 June 2014.
Earlier in the year DHS signed another contract with Fujitsu, for the hosting of its controversial Housing integrated information Program (HiiP) for a period of up to five years beginning 1 July 2012. It entered into the $10.7 million contract after it became apparent that the Victorian ICT shared services unit CenITex did not have the capacity to host the system. The Department was given Government approval to bypass mandatory usage of shared services and approached the market in November 2010.
Development of the HiiP was still underway in November 2011 when the Victorian Ombudsman investigated it alongside nine other troubled ICT projects in the state.
The Ombudsman found that the budget for the project had reached $123.5 million at November 2011, more than $30 million over its original budget of $93 million. He expressed concern that nearly 12 years after the legacy Integrated System for Information Processing (ISIP) had been deemed past its usable lifetime, a replacement had not yet been fully implemented.
Deloitte Touche Tohmatsu has recently conducted user acceptance testing for the HiiP, suggesting the Department may have commenced the system’s operations.
In addition to the Fujitsu infrastructure services being phased out over the coming year, DHS receives desktop, network, directory, hosting and helpdesk services from the Government’s central ICT shared services provider CenITex since it fully transitioned to the unit in July 2010.
However the future of the internal provider could be in doubt. Work on a whole-of-Victorian Government ICT Strategy is currently underway, and the Technology Minister Gordon Rich-Phillips has hinted to other media outlets that significant reforms to the way that CenITex operates could be part of the resulting plans.