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ATO Hatchets $1bn Optus Deal

The Australian Taxation Office is set to replace its humongous managed-network services deal with Optus, spinning out one of three IT outsourcing agreements slated for refresh over the next two years.

A year after announcing it would adopt more flexible contracts, the ATO said it would approach the market for the first of six new managed-network service bundles.

The bundles, which cover everything from fixed voice services to unified communications and contact centre services, will take over the ATO’s existing managed-network services deal with Optus when it ends in June next year.

Optus has held the ATO deal since the agency split up its monolithic IT outsourcing agreement with IT services company EDS (now DXC) in 2009, beating Dimension Data, Telstra and CSC to the initial $186.5 million contract.

The telco was last handed a $217 million contract extension in April 2018 that pushed out the deal to June 30, 2020. As at September this year, the total value of the deal was $986 million.

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