What's Happening?
The Department of Foreign Affairs and Trade (DFAT) has renewed its contract with Datacom for contact centre services, valued at $176 million over five years. Datacom will manage telephony and processing services, including for the Australian Passport Office, until 2030. The renewal follows an auditor-general's report highlighting cost underestimations in the previous contract, which saw significant amendments and increased staffing levels. The new contract will utilize the Australian Taxation Office's outsourcing delivery panel, marking a shift from the previous procurement method.
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Why It's Important?
The renewal of the Datacom contract underscores the importance of efficient contact centre operations for government services, particularly in managing passport processing amid high demand. The contract's value reflects the need for robust infrastructure and staffing to meet service requirements. The decision to use a different procurement panel may indicate a strategic shift in DFAT's approach to outsourcing, potentially influencing future government contracts and service delivery models.
