The Information Technology Services Department has signed contracts with three companies who will provide information-systems hosting services - marking a milestone in the Government's technology outsourcing programme and the development of its IT infrastructure.

At the contract-signing ceremony this afternoon, Director of Information Technology Services Alan Wong said the contracts enable Government departments to outsource the management and operation of their information systems, which are located in the department's data centres.

His department currently provides central data centre services to government bureaus and other departments at its data centres. Demand for data-centre services is expected to rise as the Government develops e-Government initiatives.

Contractors to provide management, services

Under the new arrangement, the contractors - Hewlett Packard HK SAR Limited, Jardine OneSolution (HK) Limited and National Computer Systems Pte Limited - will provide the management, operation and system support services for the new information systems. The department will continue to provide office space and support facilities.

Such outsourcing arrangements enable the Government to tap into existing market resources to expand the delivery capacity of its hosting services without increasing its staff.

It is also an important launch-pad for the Government to explore the "on-demand" or "utility" computing model under which shared IT facilities could in future be made available to client departments in a cost-effective manner.

The contracts will take effect on November 17 for a period of 36 months with an option to extend by 24 months.

Government pursues active IT outsourcing strategy

The Government has been pursuing an active IT outsourcing strategy. The arrangement of standing offer agreements has proved to be an efficient means of obtaining quality IT products and services at competitive prices, Mr Wong said.

Under such agreements, IT assignments are open to bidding by contractors and are awarded to the contractors that satisfy the requirements and offer the lowest price.

An example of a successful standing offer agreement is the Information Technology Professional Service Arrangement launched in June last year. So far, 218 IT projects and service work assignments with a total value of $178 million have been commissioned under the arrangement.

Nearly 90% of the projects were commissioned within 40 working days and 46% started within 20 working days, thus enabling both the departments and service providers to make substantial efficiency gains through the shorter development period.

In collaboration with the Government Logistics Department, a new series of standing offer agreements on the supply of server systems and related services were launched last month.