Analysis: CenITex to bring in long term benefits

The Victorian State Government launched CenITex, the ‘centre for IT excellence’in July.

Dr Steve Hodgkinson, research director, Public Sector at research firm Ovum told CRN this was a significant development in the evolution of the state’s e-government agenda – most notably because CenITex was created as a State Owned Enterprise entity.

CenITex was created by the merger of two existing ICT shared services entities and will initially serve some 10,000 users over six departments, and ultimately other departments if service levels and costs evolve in line with expectations.

Its mission is to provide integrated, ICT infrastructure, shared services for Victorian departments and agencies.

Its initial scope of activities comprises Workplace Services (desktop provision and support) and Hosting Services (data centre and application hosting and support).

“CenITex is now outside of the line of control of the departments and their secretaries," said Dr Hodgkinson.

"Its CEO reports to an independent Board of Directors under the direct oversight of the Minister for Finance, Workcover and the TAC, Tim Holding,” he added.

According to Dr Hodgkinson support for increased centralisation of ICT operations is by no means universal in the public sector.

It is also part of a general trend towards increased consolidation of government ICT operations.

“One consequence is ‘fewer larger contracts’ for the core ICT services, and this tends to favour the larger service providers,” he said.

“On the flip side, there is a lot of internal transformation and re-engineering work required within CenITex, and this will create opportunities for local ICT service providers because skilled people, as always, are in short supply.”

IT service providers should expect some rationalisation and aggregation of their existing outsourcing arrangements.

“Some of the existing outsourcers may be negatively impacted,” said Dr Hodgkinson.

“CenITex may also, however, decide to enter into new outsourcing arrangements once its initial rationalisation and restructuring activities are completed, so there maybe new outsourcing opportunities in the future.”

He claimed these will likely be larger than those at present due to the fact that CenITex is being established as the centralised ICT services agency supporting multiple departments.