Defence gives $84m IT support contract to Unisys

Defence has re-engaged Unisys to provide IT support services under an $84 million deal,  replacing current provider Fujitsu from March next year.

The national deskside support (NDS) contract covers IT assistance for Defence employees across Australia.

The change in a deskside support provider arrives during a time when Defence is attempting to modernise its ICT approach and bring tech talent in-house. 

A Defence spokesperson said the ability resolve technical problems swiftly was a key strategic aim for the organisation as it moved to tackle more of its IT workload in-house.

“The newnational deskside support contract improves Defence’s ability to perform ICT projects in-house, respond flexibly to changing and strategic requirements and ensure any disruptions are promptly resolved,” the spokesperson told iTnews. 

The department's current NDS contract with Fujitsu runs until March 31 next year.

The contract was originally valued at $99 million when it was awarded to Fujitsu in 2019 and was expected to run for three years.

Defence extended the contract with Fujitsu out to 2025. Over its six-year life, it has been through multiple amendments.

The highest-value amendment came in November 2022 as a contract extension, and pushed the-then cost of $133 million up to $274 million. 

It was last valued at $306 million before it was awarded to Unisys.

Unisys had previously been providing IT support to Defence. It lost the contract to Fujitsu amid a shakeup to Defence's support arrangements.

A Defence spokesperson told iTnews that the current NDS contracts with Fujitsu and Unisys would run concurrently over the next three-to-four months until the transition period was complete.

The new contract with Unisys will run until March 2028 and can be extended by a maximum of four years.