WA companies win four-year software development contract

An estimated $20 million and more than 30 new jobs will flow into the State economy as a result of a new, four-year software development contract.

Deputy Premier Ian Taylor told the Australian Computer Society's breakfast meeting this morning that the Western Australian operations of Computer Power Pty Limited and IBM Australia had won a unique contract from the IBM Corporation.

"This achievement, against vigorous worldwide competition, should prove an inspiration to local firms seeking international markets," Mr Taylor said.

"It also lends support to the Government's commitment as outlined in the 'WA Advantage' economic strategy to foster further expansion of the State's technology and science capabilities."

He congratulated Computer Power and IBM Australia for their commitment to a long-term export strategy and said it confirmed the capabilities of local IT specialists.

Mr Taylor said this was the latest and most significant in a string of successes stemming from the State Government's Associated Benefits Scheme.  Established in 1985, the scheme ensured that companies supplying computer equipment to Government generated work for local firms.

The Deputy Premier said IBM had been exemplary in fulfilling its commitments, generating contracts worth about $18 million so far, and more than $9 million in export income from WA in 1991.

IBM software development was currently employing about 70 information technology professionals in Perth.

The four-year contract would give Computer Power responsibility for upgrading and improving on one of IBM's existing products.  The commercial sensitivity of this work meant that few other details could be released.

Uniquely for such contracts in WA, Computer Power would meet some of the development costs and stood to make even greater returns if the product was a success on the market.  After four years, the contract partners had the option of renewing the deal.

Mr Bob Love, manager of Computer Power's IBM Software Development Group, based in West Perth, said the contract resulted from years of work in establishing a good relationship with IBM branches throughout the world.

"In 1987, we set up the group and worked closely with IBM's Australian Programming Centre to gain experience and a profile with the company.  This gave our staff access to powerful computer equipment and allowed us to link in with IBM's worldwide communications," he said.

"Our first overseas job was an 18-month contract with a laboratory in Japan.  We delivered quality work, on time and within budget, which helped us gain a good reputation.  Since then we have had contracts working with IBM's software laboratories in the US and Europe."

Computer Power is a Melbourne company which has been present in WA since 1982.  As well as its work for IBM, the WA branch supplies professional and consulting services to many of the State's largest private and Government organisations and runs a training institution for computer specialists and operators.  Most WA staff have been recruited locally and have received extensive training and skills development as part of their employment.

Adrian Porteous, IBM's Software Development Manager (WA), said this new contract was an exciting initiative for both companies.

"Australia has an excellent reputation for its information technology skills.  Over the past seven years, we have developed a substantial business working with local companies to develop software products for the IBM Corporation.  The skills our business partners have in Perth are recognised as world class and have been a major contributor to the growth of our business in WA," Mr Porteous said.

Surprisingly, Mr Porteous believed that the big time difference between WA and the USA had provided a definite advantage to local software developers.

"Clients in North America can leave a problem with us at the end of their working day and we will have fixed it for them by the time they get to work the next morning," Mr Porteous said.