AR 2015-16 Chief Executive report
The Government’s decision in June last year to discontinue the initiative to outsource CenITex kicked off 12 months of exciting transformation and renewal for the organisation. We have ended 2015/16 with a second successive budget surplus, a workforce that is growing in response to increased customer project demand, significant investment in both enhancing our security environment and the introduction of contemporary cloud based services and a range of programs intended to enable us to more closely engage with our customer base.
Highlights of 2015/16
In the past financial year, we:
- Began work on launching a suite of productivity tools, including email, based around Microsoft Office 365 as an alternative to our current Lotus Notes services. These new services will be available to our customer base in 2017.
- Completed the first of a number of initiatives as part of a three-year, $6 million security uplift program. These included the introduction of application whitelisting, an upgrade to our intrusion protection system and launch of a 24x7 Security Operations Centre.
- Permanently co-located support engineers and service managers onto customer sites in order to provide more responsive support and greater visibility of ICT support staff.
- Completed a major customer satisfaction survey addressing all aspects of IT services and support provided by both CenITex and our customers’ IT staff. The findings have resulted in action plans for both CenITex and customers to address service improvements and enhancements.
- Announced an across-the-board reduction in customer prices of 5 per cent for all services currently on our catalogue.
- Established a $2 million Innovation Fund to enable co-funding with individual customers’ projects that had the potential to result in new services that would be of value to our broader customer base. Nearly $1.8 million was committed during the year and the fund has been re-established for 2016/17.
- Developed, in close consultation with our customers, a three-year Customer Services Roadmap and a Cloud Services Strategy, both of which will inform the development of the services and products that will be added to our service catalogue.
CenITex ended the year with a second successive financial surplus, this time of $7.5 million, due mainly to prudent financial management and greater than budgeted project work driven by our customers. Earnings before depreciation and amortisation (EBITDA) remained strong at $26.7 million, which was $2.5 million less than in 2014/15.
A total of 628 customer projects valued at $33.2 million were opened during the year.
Of these, 173 were larger projects valued at $28.4 million and 455 were minor projects valued at $4.8 million. The combination of customer projects, asset refresh initiatives and the development of new services, contributed to a fivefold increase in new sourcing compared to the previous year.
An independent and comprehensive cost review of all Government Shared Platform (GSP) services was undertaken and benchmarked against the market. In line with this review and in light of efficiency gains, the CenITex Board agreed to the absorption of Consumer Price Index (CPI) and Enterprise Bargaining Agreement (EBA) related cost increases and as outlined above, a decrease in prices by 5 per cent for 2016/17.
Our Corporate Plan 2016/17 – 2018/19 sets out the transition to a new service delivery model, with a strong emphasis on cloud based solutions, that will give customers greater choice of services at prices that are comparable to best in the industry.
We are aiming for an improvement in service performance and customer satisfaction, and to deliver contemporary services that better enable our customer base to provide services and support that are vital to the Victorian community.
I would like to acknowledge and thank CenITex staff for embracing these transformational initiatives. I congratulate them again on their tremendous resolve, their continued resilience and the energy they bring to what they do, every single day. We look together to the challenges ahead with confidence and excitement.