IT AGREEMENT HAS WIDE-RANGING BENEFITS FOR PROVINCE

Released on July 5, 2006

Saskatchewan's businesses and taxpayers will benefit from a major computer leasing deal between the Information Technology Office (ITO) and Lenovo Canada.

Lenovo was the successful bidder for a contract to supply the ITO with its computer hardware needs for the next three years. Lenovo will provide up to 12,000 computers at a cost not exceeding $14.5 million, during that time period. The equipment will be used to meet the needs of 16 government departments and agencies that currently receive their Information Technology (IT) services from the ITO. Other government organizations that sign service agreements with the ITO in the future would also benefit.

"This agreement shows the kind of innovative business and partnership arrangements our government is fostering in its dealings with the private sector," Minister responsible for Information Technology Andrew Thomson said. "The deal will spur economic activity for several IT firms and create jobs for one of our respected home-grown IT companies, while saving taxpayers money."

The preferred pricing arrangement in the contract will mean a cost savings to taxpayers of between $1.8 and $3.6 million.

"The Information Technology Office clearly requires the most secure and reliable technology available," Lenovo Canada national sales manager David Yee said. "Lenovo ThinkPads and ThinkCentres feature self management technology and state-of-the-art security. Lenovo technology will provide government offices with new levels of productivity, and taxpayers will benefit from these new efficiencies. We are proud that Lenovo technology has been chosen by the Government of Saskatchewan."

The computers will be supplied through the Regina branch of NexInnovations Inc., which will act as the reseller in the agreement. The firm will also service all the leased equipment, with the activity providing added stability for its Saskatchewan operations.

"NexInnovations is committed to providing the secure, cost-efficient delivery of computers to departmental users within the Government of Saskatchewan, according to their unique needs," NexInnovations Inc. president and CEO Hubert Kelly said. "We are pleased to provide IT services that enhance productivity, improving service levels for all stakeholders by drawing upon our local resources, including best in class support."

Another integral part of the agreement will see Morning Star Technologies of Regina enter into an arrangement with the ITO to assist them with the refurbishment of equipment during the contract. The arrangement will mean the creation of a $100,000 business venture for Morning Star.

"Morning Star Technologies feels that this agreement with Lenovo and the ITO will further contribute to our ability to hire and retain the youth of the province that are looking for entry level technology positions to start and create a long term career in Saskatchewan," Morning Star Technologies vice-president of Corporate Development Dwayne Hnatiw said.

"The benefits of this agreement are a direct result of our government's efforts to increase the efficiency and effectiveness of its internal IT services, by consolidating operations under the umbrella of the ITO and establishing new partnerships with the private sector," Thomson said. "The agreement was made possible only because of the economies-of-scale provided by an integrated, co-ordinated approach to internal IT service delivery."

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For More Information, Contact:

Art Newton ITO Regina Phone: (306) 787-2215 Email: anewton@ito.gov.sk.ca