The state government has signed a $87.8 million contract with a consortium consisting of ASG Group and Computer Sciences Corporation for its Shared Corporate Services project.
Treasurer Eric Ripper today announced that ASG (Asia Pacific) Pty Ltd had signed the contract to help facilitate the project.
The government estimates that when complete, after 2007, the implementation of shared services will shave $55 million annually from its IT and back office services by cutting down on waste and duplication.
Mr Ripper said the Shared Corporate Services project would see more than 100 government agencies consolidate their back office functions into three shared service centres.
"The signing of this major contract is another significant step in delivering a more efficient, cost-effective public sector in Western Australia," the Treasurer said.
Under the 10-year contract, the ICT infrastructure services to be supplied by ASG will play a major role in how the Office of Shared Services delivers services to their client agencies.
"Reaching full potential in 2008, the Shared Corporate Services project is expected to deliver savings to WA taxpayers of $55 million a year," Mr Ripper said.
"That is money which can be redirected to priority areas such as health, education and law and order."
ASG chief executive Geoff Lewis said the company was delighted to have completed contract negotiation on the Company's second major WA Government contract in 2005.
"This is a vitally important contract for the state government in its reform process. ASG is now a national group but has its origins in WA and is delighted to play such an important IT role in its state of origin."
Mr Lewis said the contract is expected to contribute strongly to ASG's revenue and earnings growth from the 2007 financial year after a period of transition and establishment during 2006/07.
