The federal government has signed up global tech giant SAP to aid its quest to cut IT procurement costs, saying that the new agreement will cut down duplication.
Under the deal, which comes into effect immediately for all existing and new SAP contracts, government agencies purchasing SAP products or services will now follow a single licensing pathway.
SAP, along with IBM and Oracle, is a major provider of solutions across the government, having secured close to $2.5 billion worth of contracts since 2005.
The federal government is currently in talks to secure whole-of-government arrangements with IBM and Oracle. It also has a volume sourcing arrangement with Microsoft In place, which has generated savings of more than $200 million since coming into operation in 2008.
Assistant Minister for Digital Transformation Angus Taylor said the agreement was another step
toward simplifying IT procurement.
“The SAP agreement will deliver savings through reduced duplication and administrative burden for departments,” Assistant Minister Taylor said.
“Government is driving hard to reduce costs so that it can invest in innovative new solutions. We
know that a co-ordinated approach to ICT procurement works.”