AR 2013-14 Outlook

8.1 Background

The Victorian Government ICT Strategy 2013-14 marked a significant shift in the delivery of ICT services to government departments, many of whom have relied on CenITex as their internal provider of these services for the past six years.

Program Evolve was established to enable CenITex to outsource its current range of services. The Program had three streams of work:
Market Engagement - procurement activities to engage the appropriate ICT infrastructure provider(s).
Capability Uplift - to design a new target operating model and strengthen commercial and service integration abilities.
Change Management - to support CenITex and customer departments in adopting the new model while lowering operation risk in transition.

As at April 2014, Program Evolve had successfully completed the Expression of Interest and Collaborative Dialogue phases of the procurement process, prepared the Request for Proposal (RFP) and draft contract for review, and developed a draft Target State Operating Model.

To enable a clear separation between CenITex's current responsibilities for ongoing service delivery and the focus on outsourcing these services, Program Evolve will move organisationally from under the CenITex Board to the Department of State Development, Business and Industry (DSDBI) as of 1 July 2014. The Victoria Government’s Chief Technology 

Advocate and DSDBI will be accountable for governing Program Evolve, establishing new outsourced contracts for CenITex services, and forming a new Whole Of Victorian Government operating model and capability to manage the outsourced contracts. 

The Victorian Government, in May 2014, announced an allocation in the Victorian Budget 2014-15 of $6 million to DSDBI to finalise the RFP process. This process is the next stage and it is expected that CenITex will start transition in 2015.

The CenITex goal is to successfully transition CenITex services to the private sector on behalf of its customers. 

8.2 The Future

CenITex business planning has been developed under the expectation that once contracts are in place, a new operating model established and all transfer and transition activities completed, then CenITex as an entity will be closed. The exact timing of this would depend on responses to the RFP process. While this transition occurs, CenITex will continue to deliver current services to our customers, as follows:

Workplace Services Hosting Services Professional Services
  • Desktop services
  • Application hosting
  • Customer funded projects, including:
  • solution design and build
  • project management
  • File and print services
  • Storage and backup
 
  • Email and diary services
  • Restore and disaster recovery
 
  • Personal productivity applications
  • Database and application management
 
  • Internet access services
   

8.3 Challenges and Priorities

CenITex stakeholders have an expectation that the majority of its services will be transitioned to the private sector and remaining functions transferred to DSDBI via machinery of government change. Transitioning out of the business of ICT infrastructure service provision while maintaining service delivery and ensuring financial obligations are met will make for a complex and dynamic operating environment with a unique set of challenges which include:

  • continuing to deliver ICT infrastructure services essential to our customers while CenITex goes through substantial change
  • retaining key talent and maintaining employee productivity and morale while they face an uncertain future
  • ensuring appropriate knowledge and specialist expertise is established to manage the outsourcing of CenITex
  • delivering the Government change program in an environment of continuing fiscal restraint
  • maintaining the momentum to minimise impact on CenITex’s financial stability prior to cessation as an entity.

8.4 Our Focus

  • Consistent with Government ICT strategy and CenITex goals, and ensuring financial solvency during the transition of CenITex, our focus will be leveraged across four key areas:
  • Maintaining stability of current services for our customers
  • Ensuring financial solvency
  • Working collaboratively to support transition
  • Supporting our people through the change.

This will be done by:

Maintaining stability of current services for our customers
  • Maintaining our disciplined approach to service delivery
  • Maximising stability by minimising change
  • Continuing to address high risk priorities with a reduced focus on lower priority risks
  • Maximising and maintaining flexibility of key third part arrangements
     
Ensuring financial solvency
  • Preserving the existing customer base and revenue
  • Focusing on essential activity and expenditure
  • Continuing to work our assets harder - utilising excess capacity and adopting a fix on fail approach for asset management
     
Working collaboratively to support transition
  • Implementing effective governance arrangements for transition
  • Working with customers and stakeholders as they transition
  • Supporting DSDBI and vendors with RFP, due diligence, transition and transfer
     
Support our people through the change
  • Keeping people regularly informed about the process, their options and the timeframes
  • Providing a range of programs and resources to equip staff to deal with change
  • Identifying opportunities for career transitioning, cross-skilling