ASG Group, an Australian-based IT service provider, signed a deal worth AU$23.8 million with the Australian Department of Infrastructure and Regional Development, according to the industry news site ZDnet.com.
“This contract solidifies our position as a premier provider of desktop and infrastructure services for the federal government,” said Geoff Lewis, ASG CEO.
ASG will provide desktop services in addition to end-to-end service management to the governmental department over the next five years at least. There are options in the agreement that could extend the services three more years.
The company has had a working relationship with the department and has provided managed services for the last seven years or so in a variety of capacities. But this marks the first official binding contract between the two.
ASG Group is familiar with working in the public sector in other areas as well as they’ve worked with the Victorian Department of Education and Training and Victorian energy provider, United Energy and Multinet Gas.
The company’s most recent addition simply cements their position as one of the country’s premier managed service providers. The group signed over AU$200 million worth of contracts in the 2015 fiscal year alone, according to arnnet.com.
In fact, this reflects the growing trend among industry leaders around the world to take advantage of these outsourced resources. Overall, 90% of firms use some sort of contracted or freelance talent.
One of the most promising aspects of their success is that they aren’t limited to their own borders, either. Back in July, the company signed a AU$35 million with CIMIC (formerly Leighton Holdings), which is a group of international contractors. They will provide application and infrastructure managed services and will also support the company’s enterprise resource management team.
More and more governments around the world are turning to outsourcing their managed service provider needs as a way to cut costs and improve efficiency. ASG Group is one of many that has seized the opportunity and at least for the next few years business appears to be good.