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

Providers Australia has now put in more than $one billion redeveloping the Centrelink IT program

Providers Australia has now put in more than $one billion redeveloping the Centrelink IT program underneath its enormous, 7-calendar year welfare payment infrastructure transformation (WPIT) system.

The greenback-figure – which addresses the initial 5 many years of the overhaul (2015-sixteen to 2019-20) – was revealed in responses to question on discover from modern spending budget estimates revealed late very last calendar year.

A spokesperson would not say how substantially more had been put in on the project to replace the country’s legacy income safety built-in program (ISIS) considering that it entered the last leg in July 2020.

Overall funding for the project stands at just underneath $one.6 billion right after the authorities allocated $542.6 million to tranche four in very last year’s federal spending budget.

A breakdown supplied by Providers Australia present that tranche four is the most high-priced to day, adopted by tranche 3 ($525 million), tranche two ($286 million) and tranche one ($230 million).

Source: Providers Australia

The $one billion in expenditure “excludes financial savings that have been applied”, which Providers Australia estimates at $277.6 million concerning 2015-sixteen and 2019-20.

A further $317.4 million in financial savings that stem from tranche four – which is slated for completion by July 2022 – is projected in excess of four many years from 2020-21, according to the 2020-21 spending budget.

WPIT financial savings are projected to ramp up pursuing the completion of tranche four, with ongoing returns of $312 million for every annum predicted from 2024-twenty five.

At least some of these financial savings are predicted to move from the reuse of core WPIT platforms throughout Providers Australia as properly as the rest of authorities.

Tranche four will see Providers Australia bring improvements from previously tranches to incapacity, carers and people payments as properly as the age pension, as properly as comprehensive two significant IT platforms.

Just one of these platforms is the SAP-centered payments platform, dubbed Payment Utility, which commenced administering payments in genuine-time in November.

The other significant element is the entitlements calculation engine remedy that Infosys is building underneath an preliminary $143 million contract pursuing a 7-month proof-of-principle.

Tranche four will also include decommissioning the ISIS platform, but as highlighted by an audit late very last calendar year, substantially of this operate is but to consider spot.

By the conclusion of June 2020, only about 13 p.c of ISIS was predicted to have transitioned to the SAP CRM and Payment Utility, with a further 39 p.c slated to changeover by the conclusion of June 2022.

This suggests “almost 50 % of the decommissioning was not predicted to be finished by the conclusion of the program” inspite of this continuing to be the principal target of the overhaul.

The audit also uncovered that while the project is on keep track of, ISIS decommissioning delays risked “one of the original objects of the WPIT system and negated realisation of all the predicted benefits”.