VIC OSR cite ITIL for savings

The Victorian Office of State Revenue (OSR) has saved $2million a year using the IT Infrastructure Library (ITIL) framework.

The agency has undergone huge network and operational changes over the last five years with a completely revamped disaster recovery system, but the best savings have come from using ITIL, which was introduced after the organization moved its outsourced IT shop back in-house.

Paul Broderick, commissioner of the Victorian State Revenue Office, said ITIL ensures every project is on time and under budget.

He said it has given the IT shop a high level of focus on project management with strong systems in place.

Broderick said the Office opted for ITIL for two reasons, the first of which was that it decided to insource IT services which had been outsourced IT services about four years previously.

"But needed to be sure we were managing our systems to best practice," he added.

Philip Dunlop, IT&T manager of strategy and planning, did some research and found ITIL was based on BS 1500 which was embraced by staff.

"When we insourced, we had a budget of around maybe $12 million a year to spend on IT and we were able to cut that down by $2 million," Broderick said.

"Over the last four to five years we have done about a dozen different projects on things like enterprise architecture, upgrading the core revenue management system, electronic transactions and disaster recovery enhancements, probably about 12 or more projects worth about $45 million."

Dunlop said when the agency opened a new back-office site in Ballarat in 2002 it also rolled out a new storage area network (SAN) array using the Veritas NetBackUp suite provided by Hitachi.

Dunlop said OSR production systems can easily be moved to the alternate Ballarat site and data swapped between the two.

"Since we went to the new site we have increased our redundancy in the network, but it has also given us greater capacity," Dunlop said.

"Windows terminals generally run about five minutes behind if there is heavy demand then catches up on the database site, except when we are running batches it is within 20 minutes ... We use the backups in Melbourne to load the test database and bring the Ballarat tape down and take it off site for storage.

"Our core revenue management system is in Ballarat where all our back-office people are and we fail that over to Melbourne."

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