As part of the whole-of-government purchasing arrangement, SAP was awarded a $42 million contract from the Australian Digital Transformation Agency (DTA). The contract ensures that all the SAP services and products are made easily available to the Australian government agencies. According to Australia’s Angus Taylor, Assistant Minister for Digital Transformation, the agreement is yet another step toward simplifying IT procurement in Government. The federal government has introduced this new whole-of-government licensing arrangement with SAP in an effort to cut costs in IT procurement.
The arrangement is for both the existing agencies as well as those which are about to buy the SAP products and services. The contract is meant for a term of four years and includes SAP software and support services, cloud services and the digital business services. Other similar companies like IBM and Oracle were also in talks with the DTA to establish a series of new whole-of-government coordinated procurement arrangements with the technology vendors. The Digital Transformation Agency exists to make it easy for people to deal with government, by helping government transform services to be simple, clear and fast. Australians are more mobile, more connected and more reliant on technology than ever before. This is why government is working to improve how it delivers services online. The investment in SAP will assist in better procurement arrangements, says report.