Thursday, 16 February 2017 20:24

SA govt outsources IT functions, 180 to lose jobs Featured

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One hundred and eighty South Australian Government IT workers will lose their jobs after the state government announced today that all its IT functions would be outsourced to the American multinational firm Computer Sciences Corporation.

The South Australian Government announced that CSC would provide and support desktop PCs, laptops and tablets to its agencies.

It said that 400 jobs would be created in the state as a result of the contract being granted to the American firm.

Out of the nearly 1000 South Australian workers who will lose their jobs at Holden, when the car manufacturer ceases Australian production in October, 30 will be reskilled and provided employment opportunities by CSC.

Of the 180 IT workers, the government said that they would have the chance to "express their interest in a position with CSC" but gave no guarantee that they would secure employment.

The government said it would save $11 million a year due to the new arrangements. The contract will run for seven years and during that period CSC will spend $5 million to set up a new office in Adelaide and raise its employee numbers from 100 to more than 700 by the end of the contract.

South Australian premier Jay Weatherill described the new arrangement as a "win-win-win for taxpayers, the government and the economy".

He said: "The broader economic and employment benefits that will flow from CSC winning the contract are significant. They have committed to establish a local partner network for small to medium local enterprises across the state that will support this new contract.

"Collectively, these SMEs will employ 100 South Australians and invest over $30 million in job creation over the contract period."

CSC Australia and New Zealand managing director Seelan Nayagam said: "CSC is delighted to be partnering with the South Australian Government on its transformation to a digital workplace.

"We commend the SA Government for initiating a technology initiative of this scale which will see the rollout of CSC’s next generation offerings and solutions – all aimed at enabling a modern and efficient public service – whilst stimulating the South Australian economy and creating jobs.

"Today’s announcement is a demonstration of CSC’s commitment to making a positive impact and ensuring a brighter future for South Australians. We are confident this programme will set a benchmark and create a blueprint for other public sector agencies across Australia."

CSC has been a technology provider to Commonwealth Bank and other businesses and governments. It was embroiled in an alleged bribery scandal at the CBA in 2015 and also charged with accounting fraud and fined US$190 million by the US Securities and Exchange Commission the same year.


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Sam Varghese

Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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