The agencies that have made this move include: NSW Department of Family and Community Services; Victorian Government Department of Economic Development, Jobs, Transport and Resources; Australian Hearing; and Open Universities Australia.
These government agencies now achieve significant returns on their enterprise system investments. Furthermore, they have realized savings of up to 90 percent on total maintenance costs. By changing to third-party support, these departments have unlocked substantial funds and have freed up internal resources that managers can redirecte to innovation initiatives and high-value projects within their organization.
All Rimini Street clients benefit from the company’s flexible, premium-level enterprise software support model. This includes its industry-leading Service Level Agreement (SLA) of 15-minute response times for all critical Priority 1 cases. The company also assigns clients a Primary Support Engineer (PSE) with an average of 15 years of experience.
“Every year, the Australian government spends millions of dollars on their SAP and Oracle maintenance. The vendors’ typical profit margin for annual software maintenance is around 90 percent and very little of the underlying service actually comes from within Australia,” said Andrew Powell, general manager, Asia-Pacific, Rimini Street.
Powell added, “Thankfully, these government organizations now have a proven alternative for their enterprise software maintenance. The introduction of stiff competition in this market will drive huge savings across the Australian government, and gives these organizations back the control of their IT roadmaps to ensure they are now business-driven focused, versus dictated to them by the vendor. That is a good thing for all Australians, in fact, it’s a game changer.”
The state of innovation
According to a recent global survey, “The State of Innovation” (Vanson Bourne; sponsor: Rimini Street), 89 percent of organizations across the globe agree they should be spending more on innovation. However, 77 percent believe they are spending too much just “keeping the lights on.”
In the public sector, 70 percent of respondents cited “lock-in vendor contracts” as an additional blocker to innovation efforts. For those public sector organizations who were able to find funds for innovation, 32 percent already experienced improved productivity, with 35 percent stating they have experienced an increase in customer satisfaction.
Additionally, those public sector organizations that have been able to invest in innovation initiatives cited a nearly 15 percent decrease in the organizations operating costs overall, indicating a measureable return on their investment.
“Australian government is funded by the public purse. Consequently, government agencies must demonstrate the money they are spending adheres to strict budget guidelines. It also has to generate real business value,” Powell continued. “This accountability model places pressure on those organizations to not only stretch budgets, but to establish sound strategies for innovation despite their financial pressures.”