The Department of Immigration and Multicultural Affairs yesterday announced a three-year deal with IBM for core technology services as part of its $495 million Systems for People project.

The contract, worth an estimated $200 million, is for the development of portals for the department's staff to access core information systems.

IBM has a bridging contract with the department worth $16.5 million which allowed the vendor to start work on the upgrade while negotiations were continuing.

DIMA was also expected to announce the supplier for its $100 million desktop computer contract after a meeting of the department's systems committee.

However, a department spokesperson said the winning tender will not be announced until early next week.

IBM, Unisys, Getronics and current mainframe and mid-range supplier CSC have all been shortlisted for the contract.

DIMA has already awarded the mainframe and mid-range support contract - extended for a further two years and estimated to be worth $50 million - under the Systems for People project to incumbent CSC without going to tender.

A DIMA spokesperson said the contract is simply an extension of the current deal.

Another tender due for renewal is a $90 million telecommunications contract for the federal government's Group 8 outsourcing cluster.

Agencies in the cluster include the Department of Agriculture, the Department of the Environment and Heritage, the Civil Aviation Safety Authority, the Australian Communications and Media Authority, and the Public Service Commission.

The contract is expected to be announced in coming weeks.