DXC Technology and NEC look set to share in a South Australian computing services contract worth up to $139 million.
The SA Distributed Computing Services procurement arrangement comes up for renewal in June, and the state government is currently finalising negotiations with the existing two suppliers.
NEC and CSC were first appointed in May 2014 following a public tender for the initial three-year deal, which was worth up to $128 million. CSC has since merged with the services division of Hewlett Packard Enterprise to form DXC Technology.
A spokesperson for the state government's Department of the Premier and Cabinet told CRN that the initial three-year arrangement had come in under budget.
The spokesperson said the arrangement allowed for an extension term of up to three years and hence the department would not go to market for new suppliers.
The arrangement is broken down into four segments: server management; client management; solution design; and service integration.
Both suppliers have good win rates in South Australia, with DXC scoring a outsourced desktop contract worth $394 million earlier this year, and NEC in 2014 ousting Dimension Data for the network managed services contract worth $70 million.
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