TfNSW's network services deal with Datacom hits $190m

Transport for NSW has added another $71 million to its ongoing managed network services arrangement with Datacom.

Datacom secured the five-year outsourcing deal in July 2022, taking over from incumbent provider DXC Technology in a contract initially valued at $119 million.

Three years in, the scope of the agreement has expanded to include additional third-party solutions, including Cisco products, pushing the total contract value to $190.1 million.

Despite being described as a “master managed network services panel” on NSW’s procurement site, Datacom remains the sole provider under the arrangement.

“This panel plays a foundational role in enabling Transport for NSW’s broader digital infrastructure strategy, as reliable and secure network connectivity underpins nearly all digital initiatives,” a TfNSW spokesperson said.

The contract, which ends in May 2027, sees Datacom provide services including 24/7 monitoring, incident response, service management and support for major infrastructure upgrades and network platform enhancements.

These span “the full spectrum of enterprise IT network services”, including TfNSW’s data centres, WAN, LAN, SD-WAN, office sites, depots, and campus networks.

DXC Technology, formerly UXC, delivered these services for a decade after UXC first secured the contract in 2012. UXC was acquired by CSC in 2015, and later became part of what is now called DXC.

TfNSW said the deal with Datacom “supports the adoption of SD-WAN and virtual networks,” building on initiatives that began during DXC’s tenure as the managed network services provider.

“These modernisation initiatives were already underway prior to the change in managed service provider (MSP) and will continue to evolve,” a spokesperson added.

Meanwhile, TfNSW has also added another $15 million to a five-year deal with HCL Australia for support across the agency’s 200 applications.

Since the agreement’s execution in May 2024, HCL has provided maintenance and incident support for apps, including scheduling, transport logistics, and customer experience, alongside critical applications that span across road and rail management.

However, the now $142 million agreement was amended to include additional “enhancements, modernisation and continual uplift of cyber strengthening to keep our systems safe, secure, and optimised,” the spokesperson added.