Long-standing outsourcing partnership poised for review at Corrections

Long-standing outsourcing partnership poised for review at Corrections

Optimation and HCL have been delivering application outsourcing services to Corrections for a decade

Mt Eden prison, Auckland

Mt Eden prison, Auckland

Credit: ID 103901155 © Rafael Ben Ari |

The Department of Corrections is poised to go back to the market and potentially disrupt one of the longest-running application outsourcing contracts in government.

Corrections is planning to request registrations of interest in March for services related to its core Integrated Offender Management System (IOMS), for application development, maintenance, and support services.

When the contract was awarded in 2010, its value was reported as $40 million for its initial three-year term with rights to roll this over for two two-year extensions. Then, the contract reportedly included services for IOMS as well as other corporate systems from SAP and Oracle. 

The services have been provided for the past decade and more by a consortium, dubbed "OHR", which was led by Optimation with HCL as delivery partner alongside Wellington-based consultancy Resultex.

HCL's role was previously filled by Satyam before a 2009 accounting scandal saw the India-based outsourcer partially sold and eventually merged with Tech Mahindra in 2012.

The contract with the consortium was last extended in November 2018 following a major transformation of IOMS the previous year.

IOMS is the primary tool used by Corrections' frontline teams to manage offenders. It holds a wide
range of information including offender details, prisoner movements, property registers, disciplinary events, incidents, and interactions between offenders and staff.

Now called Web IOMS, the improved system was implemented nationally in August 2017, simplifying and improving its speed and functionality of the system, enabling front-line staff to spend more time managing
offenders and less on computers.

Optimation also worked with Corrections on its High Impact Innovation programme, developing smartphone applications to help ease prison congestion and assist the reintegration of former inmates.

Around the same time, Corrections also deployed of self-service, touch-screen kiosks in prisons, allowing prisoners to manage more of their own needs, access key sentence dates, check their prison trust account balances, submit weekly canteen orders and request meetings with their corrections officer or case manager.

Corrections spent $24.7 million in IT capital investment in the 2020 financial year, according to its annual report. IT operating costs were reported at $42 million.

That included the Department's "Making Shifts Work" project, which is investing in new shift patterns to reduce fatigue for people working in custodial roles, and upgrading rostering technology, the offender management system, and deploying Windows 10 computers to support flexible working

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Tags HCLoptimationdepartment of correctionsapplication outsourcing



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