EDS loses $60m ATO desktop contract

EDS will lose its $60 million Australian Taxation Office (ATO) End User Computing (EUC) services contract from June 2012 after the agency announced a short list of new providers.

In a statement the ATO said CSC, Unisys and Lockheed Martin have beaten EDS and Kaz (now Fujitsu) in its hunt for service providers in the EUC tender. The winner is expected to be announced in June 2010 after due diligence and negotiations are completed.

The EUC contracts include the "provision and support of desktop computers and office equipment, infrastructure support and the provision of a single point of contact for IT service management".

EDS will continue to provide business as usual EUC services until the winning bidder takes over. In October it was announced EDS would roll out 25,000 new desktops for the ATO.

Also in October, the ATO's annual report revealed its change program is high risk and mostly responsible for the office’s budget overspend last financial year.

The change program aims to migrate the agency away from legacy and paper-based systems to a single, integrated core IT system. It commenced in December 2004 at an estimated cost of $350-450 million and was set to be completed by the end of 2007.

However, the budget has blown out to double the original figure, hitting close to $750 million.

The report stated that the change program is currently undergoing Release 3, the “most difficult” phase, and that meeting the revised schedule will continue to be high risk.

The scheduled technical deployment in late January of the nation's new income tax IT system is the biggest release in the ATO's history, according to its second commissioner.

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