The NSW government is changing the way it sources and manages whole-of-government technology services. The overhaul will end two long-standing outsourcing deals and replace them with a new modular model.
New structure
The Department of Customer Services (DCS) has opened a tender to create one commercial framework that allows multiple specialist providers to deliver services across six core areas. These include managed networks, computing integration, cloud services, FinOps, enterprise observability, and firewall and networking licensing.
This means existing agreements with NTT Australia and AC3 will be absorbed into the new structure. NTT currently holds a $34 million deal for managed network services, while AC3 was awarded a computing integration contract in 2021.
Why change is needed
The government said the previous outsourcing arrangements were tied to legacy, on-premises systems and older service management models. By shifting to a modular approach, the DCS expects to attract more specialised providers, increase competition, and improve flexibility.
The department also expects the new setup to deliver efficiency gains in service integration, tool standardisation, supplier collaboration, and governance. In addition, the shift is designed to align the government with modern digital practices.
Previous contracts
AC3 won its $39 million deal after Unisys’ long-standing shared services contract ended in 2021. At that time, AC3 took on more than 4,000 systems and began preparing them for migration to Amazon Web Services and Microsoft Azure.
Meanwhile, NTT has been delivering managed network services since 2021. Its current contract is due to expire on December 31, 2025.
