SAP wins federal government contract to simplify and upgrade IT operations

By Addie Thomes

The Australian federal government has announced a new partnership with tech giant SAP to deliver savings on IT products and services.

SAP’s major focus will be on simplifying systems and leveraging savings across departments where similar systems are used.

Assistant Minister for Digital Transformation Angus Taylor said: “The SAP agreement will deliver savings through reduced duplication and administrative burden for departments. Government is driving hard to reduce costs so that it can invest in innovative new solutions. We know that a coordinated approach to ICT procurement works.”

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While the government says the contract is not designed to mandate use of SAP above other vendors, it has committed to using more SME IT vendors, with around 30% of IT spend going to smaller firms last year.

Taylor continued: “We’ve done the work to consult across government and with a number of major IT vendors to make sure we have fair and transparent arrangements in place.

“Combined, the first two iterations of the Microsoft Volume Software Sourcing Arrangement generated savings in excess of $200mn.”

SAP’s products and services will be used to deliver internal business processes, including software licences, cloud subscription and support for human resources and financial management systems.

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