Home Affairs has signed a new $165 million contract with IBM to modernise its mainframe systems. 

The agreement, part of the department's ‘Future Compute’ strategy, includes software licences, hardware, and maintenance and will run until June 2030.

The department aims to prepare for the expiry of its existing 18-year mainframe agreement with IBM, set to conclude in June 2025. 

The strategy will decouple IBM’s technology products from managed services. 

Nicholas Flood, IBM’s managing director for Australia and New Zealand, says that the deal followed a “rigorous competitive tender”. 

He said the platform supports significant national operations, such as air and cargo movements, requiring robust performance and security.

This development follows broader efforts to revamp Home Affairs' IT systems, with over 40 per cent of business systems deemed obsolete in a 2024 review. 

A January 2024 tender also sought managed service providers for various IT functions, including cybersecurity and mainframe services.

The latest contract contributes to IBM’s whole-of-government arrangements, which now exceed $1 billion in value.

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