AR 2014-15: 8. Outlook

8.1 Background

Over the past two years, the key areas of strategic focus for CenITex have been optimising existing infrastructure, improving processes related to service and project delivery, and preparing staff for a possible transition of CenITex services to a private sector provider.

During this period CenITex services have been maintained, staff turnover has declined and there has been a 40 per cent reduction in significant outages. Considerable cost savings and efficiencies have also been achieved, partly due to investments in modernising and standardising infrastructure.

In light of these efficiency gains, the CenITex Board agreed to absorb the Consumer Price Index (CPI) and Enterprise Bargaining Agreement (EBA) related cost increases so prices for customer services can remain at 2014-15 levels.

Further efficiencies are anticipated in the future due to the continuation of other cost reduction initiatives and the decision by DHHS in April 2015 to migrate from its separate environment to the GSP. The CenITex Board also intends to share these efficiencies through reducing prices.

Despite these solid gains, some stakeholders still have a negative perception of CenITex, which indicates that current levels of customer service and performance do not fully meet stakeholder expectations and must improve.

The project to outsource CenITex services (Project Atlas) was placed on hold in March 2015 while a Review related to shared services opportunities across government was undertaken by DPC. This Review examined how business support services are delivered across government, the quality of work for staff, and opportunities to leverage contemporary approaches to shared business service arrangements. Importantly for CenITex, the Review was also tasked with providing recommendations around the continuation or otherwise of Project Atlas.

The Review findings were released on 30 June 2015 and the key outcomes, specific to CenITex, were:

  • Project Atlas - set up to outsource all CenITex services to one vendor - was to be discontinued;
  • CenITex is to continue to deliver the critical secure processing and information management services it currently provides to support Government departments and will be involved in targeted market testing of some commodity services deemed readily available from the market.; and,
  • The CenITex Board is to be enhanced with the inclusion of customer representatives, remaining accountable for the governance and ongoing performance of the organisation.

8.2 The future

The strategic direction underpinning CenITex’s Corporate Plan 2015/16 – 2016/17 is the need to deliver customer-focussed ICT services that support a modern, agile and productive public service. The Corporate Plan will see CenITex’s transformation from a technology to a customer-focussed organisation, embracing innovation and the rapid roll-out of new services, and better communicating its successes. CenITex will continue to deliver a diverse range of services to customers, including:

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

   
CenITex also supplies Identity and Access Management, ICT security services, personnel on-boarding and off-boarding, and directory services. 


8.3 Challenges and priorities

The Government’s decision regarding the future direction for CenITex poses significant challenges and opportunities as well as signalling a shift in approach to ICT service delivery. While CenITex’s focus on consolidation and optimisation will remain important, it will be critical to work with all stakeholders to define a future state roadmap for WoVG ICT transformation.

CenITex has continued to improve its performance and efficiency in the face of substantial change but its business model is facing a paradigm shift. It must become an agile and adaptable customer-focussed organisation to deliver the reform and innovation required to support customer business outcomes in an environment of rapidly emerging technologies and digital transformation.

Operating in a highly complex and dynamic environment, key CenITex challenges include:

  • transforming its service delivery model and culture to embrace customer service, innovative cloud and mobile technologies, and agile methods
  • extensively partnering with market based service providers to deliver more timely and cost-effective ICT services
  • continuing to deliver reliable shared ICT services essential to customers while CenITex undergoes substantial change
  • retaining and recruiting key talent and maintaining employee productivity and morale as the future direction is confirmed
  • maintaining a disciplined approach and continuing to drive improvements in performance and efficiency
  • ensuring governance structures, processes and monitoring and reporting arrangements support the effective functioning of the shared services model.

 

8.4 Our focus

In response to address the challenges and opportunities facing CenITex, its key strategic objectives are to:

  • improve customer service, performance and efficiency
  • work collaboratively, embracing innovation, to rapidly transform our services
  • ensure financial sustainability
  • build capability and high performance in our people.

This will be achieved by:

Improve customer service, performance and efficiency  
  • Transforming CenITex from a technical to a customer-focussed organisation
  • Implementing an improved Performance Management System
  • Delivering annual surplus (target $5m surplus)
Work collaboratively, embracing innovation, to rapidly transform our services
  • Building stronger relationships and collaborative planning capabilities
  •  Enabling CenITex customers to adopt new technologies and services, including cloud
  •  Uplifting project delivery capability to speed up time to market and reduce risk
Ensure financial sustainability  
  • Preserving current customer and revenue base
  • Revising CenITex cost and pricing models to bring them into line with market-based offerings
  • Continuing to work CenITex assets harder
Build capability and high performance in our people  
  • Building capabilities to support a new operating model
  • Promoting a customer-focussed work environment for high performance
  • Keeping people regularly informed about customer expectations and CenITex’s performance.