Oracle wins $67million contract to help deliver shared corporate services project

10/6/05
Oracle Corporation Australia Pty Ltd has signed a multi-million dollar contract with the State Government to help facilitate a massive shared corporate services project, which aims to save Western Australian taxpayers $50million a year.
Treasurer Eric Ripper said the signing was a major milestone in the Government's Shared Corporate Services Project, which would see more than 100 Government agencies consolidate their back-office functions into three shared service centres.
"The Gallop Government is committed to cutting waste, duplication and inefficiency at every opportunity," Mr Ripper said.
"The signing of this contract is a major achievement in delivering a more efficient, cost-effective public sector."
Under the 10-year contract worth $66.8million, the software systems to be supplied by Oracle Corporation will play a major role in shaping how the shared service centres deliver services to their client agencies.
Currently, there are some 21 different financial management and 12 payroll systems in the largest 49 agencies, many of which are incompatible.
The three corporate service centres will enable Government departments to pool resources in the areas of financial management, human resource management and buying.
Reaching full potential in 2008, the project is expected to deliver savings to WA taxpayers of $50million a year from 2007-08.
"That is money that can be redirected to priority areas such as health, education and law and order," the Treasurer said.
"The introduction of this new software will deliver savings through reducing duplication and improving efficiency, while enabling agencies to focus on their core functions."
The Treasurer said while cost savings was the key driver, the Government was also keen to ensure the new model contributed a higher standard of service for Government agencies.
"The Gallop Government is improving the quality of services to all Western Australians wherever they live," he said.
"As a result of this project, we will be able to redeploy more of our people to frontline roles - serving the community of WA - and use the technology to rationalise our back-office functions and cut out duplication of tasks.
"This is the future of Government and it means better value for the taxpayer."
In addition to the consolidation of back-office functions across all general agencies via one centre at Cannington, there will be two other Shared Service Centres established specifically for the needs of Education and Training and Health. This will ensure that all agencies will operate from a standard implementation of the Corporate Services Business Systems.
Treasurer's Office - 9222 8788