IBM Australia's whole-of-gov deal soars above initial $725m value

IBM Australia’s renewed whole-of-government agreement is already worth $900 million, exceeding its initial value within just nine months.

An analysis of the 26 contracts struck by federal agencies using the arrangement so far - confirmed as accurate by the Digital Transformation Agency (DTA) - shows they have a combined value of $896 million.

IBM secured a five-year renewal of its whole-of-government arrangement in mid-December last year.

When the new arrangement was announced, it was given an initial valuation of $725 million.

The $725 million figure was always going to be conservative, as the prior whole-of-government deal was said to be worth $1 billion but earned IBM Australia more than twice that amount.

The growth in the spend booked with IBM also occurs as federal agencies find new use cases for IBM software and hardware, outside of those initially scoped at the time the whole-of-government arrangement was negotiated.

One of the latest deals struck under the arrangement is from the Australian Taxation Office and is worth $87 million until mid-2028.

This is in addition to a $113.7 million deal that the ATO agreed at the beginning of the renewal period.

Other major IBM customers include Home Affairs, Defence and Services Australia, according to an AusTender search.