January 24, 2021


Connecting People

Centrelink IT overhaul spend hits $1 billion as WPIT enters final leg – Strategy – Software

Products and services Australia has now spent much more than $1 billion redeveloping the Centrelink IT process less than its massive, 7-year welfare payment infrastructure transformation (WPIT) system.

The dollar-determine – which addresses the to start with five several years of the overhaul (2015-sixteen to 2019-twenty) – was discovered in solutions to question on detect from new funds estimates printed late very last year.

A spokesperson would not say how significantly much more experienced been spent on the job to change the country’s legacy profits protection integrated process (ISIS) given that it entered the remaining leg in July 2020.

Whole funding for the job stands at just less than $1.six billion just after the govt allocated $542.six million to tranche 4 in very last year’s federal funds.

A breakdown presented by Products and services Australia show that tranche 4 is the most highly-priced to date, adopted by tranche 3 ($525 million), tranche two ($286 million) and tranche 1 ($230 million).

Supply: Products and services Australia

The $1 billion in expenditure “excludes cost savings that have been applied”, which Products and services Australia estimates at $277.six million involving 2015-sixteen and 2019-twenty.

A further more $317.four million in cost savings that stem from tranche 4 – which is slated for completion by July 2022 – is projected above 4 several years from 2020-21, according to the 2020-21 funds.

WPIT cost savings are projected to ramp up pursuing the completion of tranche 4, with ongoing returns of $312 million per annum envisioned from 2024-twenty five.

At the very least some of these cost savings are envisioned to flow from the reuse of core WPIT platforms throughout Products and services Australia as nicely as the relaxation of govt.

Tranche 4 will see Products and services Australia provide enhancements from previously tranches to disability, carers and family members payments as nicely as the age pension, as nicely as total two significant IT platforms.

One of these platforms is the SAP-centered payments system, dubbed Payment Utility, which began administering payments in genuine-time in November.

The other significant ingredient is the entitlements calculation motor option that Infosys is creating less than an original $143 million agreement pursuing a 7-thirty day period proof-of-idea.

Tranche 4 will also include decommissioning the ISIS system, but as highlighted by an audit late very last year, significantly of this work is yet to consider position.

By the conclude of June 2020, only about thirteen % of ISIS was envisioned to have transitioned to the SAP CRM and Payment Utility, with a further more 39 % slated to transition by the conclude of June 2022.

This implies “almost half of the decommissioning was not envisioned to be finished by the conclude of the program” inspite of this continuing to be the major objective of the overhaul.

The audit also found that while the job is on monitor, ISIS decommissioning delays risked “one of the initial objects of the WPIT system and negated realisation of all the envisioned benefits”.