Savings to government with new SAP Australia agreement

Release Date: 
20 October 2017
Media release

The Government has announced a new strategic arrangement with SAP Australia to deliver savings on IT products and services.

The agreement will maximise the value of Government’s spend on commonly used IT by leveraging demand across agencies to achieve price reductions.

SAP products and services are used to deliver internal business processes to government, including software licences, cloud subscription and support for human resources and financial management systems.

Assistant Minister for Digital Transformation Angus Taylor said the agreement was another step toward simplifying IT procurement.

"The SAP agreement will deliver savings through reduced duplication and administrative burden for departments," Assistant Minister Taylor said.

"Government is driving hard to reduce costs so that it can invest in innovative new solutions. We know that a coordinated approach to ICT procurement works."

The arrangement is effective immediately for new and existing SAP contracts. It is not designed to mandate use of SAP above other vendors.

Assistant Minister Taylor said maximising the benefits of single vendor contracts was as significant as the Government’s focus on breaking down IT tenders and panels, to let smaller players in.

"We’ve done the work to consult across government and with a number of major IT vendors to make sure we have fair and transparent arrangements in place.

"Combined, the first two iterations of the Microsoft Volume Software Sourcing Arrangement generated savings in excess of $200 million."