CANBERRA, AUSTRALIA - Australia’s Department of Immigration and Multicultural Affairs (DIMA) has signed a contract with IBM (NYSE: IBM) for a major business transformation program.

The Systems for People program was announced in this year’s Budget, following independent reviews into DIMA’s business information needs and record management practices.

IBM was announced as the preferred partner for the program in June 2006 and contract negotiations have been underway since.

“The signing of this contract heralds the development of major improvements in client service, decision-making processes and departmental performance,” a DIMA departmental spokesman said.

“The three year contract will be worth more than AUD$200 million and is performance-based, including incentives linked to ongoing and future work opportunities,” the spokesman added.

Ian Ball, Managing Partner of IBM Global Business Services, said he looked forward to working closely with DIMA as it transforms its business operations and system processes.

“IBM is delighted to partner with DIMA in its mission to deliver high-quality services to its clients,” Mr. Ball said. “Our consulting and technology teams will work side-by-side with the department to transform the way in which Australia manages its immigration processes.”

IBM and its subcontractors will provide business transformation, systems integration and application development expertise, as well as hardware and software technologies.

IBM has already started working with the department, with more than 150 staff working alongside departmental staff in multi-disciplinary teams to develop and deliver the first major systems upgrade, due to occur in April next year.