IT contracts top $65m

Thursday, 25 February, 2010 - 00:00

FOUR contracts with separate government bodies and publicly listed outfits worth about $65 million have been secured by local IT services providers during the past month.

Most recently, IT consulting firm Ajilon signed a multi-year, multi-million dollar contract with oil and gas producer, Woodside Energy.

Ajilon WA resources sector director, Annabel Flynn, said the deal supported the development of Ajilon’s Oil and Gas IT and Business Solutions Centre of Excellence (COE), which aimed to position the company as the preferred supplier to oil and gas operators.

The deal, which covers a period of two years with multiple one-year extension options, also involves subcontract partners Kinetic IT and Prospecta, which will support infrastructure and technical SAP services respectively.

“Ajilon is one of two preferred suppliers on a panel providing application and infrastructure development, architecture, technology and support services to Woodside Information Solutions and Services,” Ms Flynn said.

Publicly-listed IT services provider ASG Group recently reported a net profit after tax of $6.5 million for the first half of the financial year, a jump of almost 33 per cent on the previous corresponding period despite revenue falling more than 9 per cent to $58.2 million.

About two weeks ago, ASG secured a five year $35 million contract, containing provisions for two one year extensions, with Western Power to deliver data centre facilities, mid-range infrastructure, network and voice over internet protocol (VoIP) managed infrastructure services.

ASG said the data centre was paramount in positioning the company as an industry leader in areas such as cloud computing, software as a service (SaaS), shared services, and disaster recovery.

As such, Western Power will be one of the data centre’s first customers and ASG expects this facility will attract a number of new and existing clients.

L7 Solutions has also been engaged as part of a wider contract in consortium with ASG as part of the Western Power deal. Valued at $5 million, L7 will deliver the network and VoIP managed infrastructure services.

In addition to the Western Power contract, ASG announced at the end of last month it had signed a three-year, $23 million contract with the WA Department of Education providing Oracle applications management, database administration and server operations.

ASG’s contract pipeline now stands at more than $450 million.

At the start of February, ASX-listed Empired Limited signed a three-year, $5 million strategic consulting services contract with WA Police, with two one-year options to extend

Synergy Plus, rebranded from ComputerCORP in November last year, highlighted a $2.6 million turnaround in its half-yearly results with a profit before tax of $1.55 million as compared to a $1.1 million loss the previous corresponding period.