The Canadian Federal Government has announced plans to create a new agency for IT savings and coordinated technologies called ‘Shared Services Canada’. Email systems, data centres and government networks will be consolidated by this new agency which will have US$2.04 billion of Canada’s annual US$5.11 billion spend on IT. 

Rona Ambrose, Public Works Minister, said that not only will the information technology system be more efficient and secure this way, it will also be cheaper. The government expects to see cost savings of US$102-204 million a year.

This is about standardisation and consolidation,” said Ambrose. “There is no new building, no new employees and no new spending. Creating this new agency, and a focal point to consolidate, is essential.”

Currently, the Canadian government uses more than 100 different email formats, owns over 300 data centres and has more than 3000 “overlapping and un-coordinated” electronic networks, according to Tony Clement, President of the Treasury Board.

Shared Services Canada is tasked with reducing those numbers to just one email system and less than 20 data centres.

Last year, Canada’s Federal Auditor General, Sheila Fraser, found that aging IT systems represented a serious issue for the government and required billions in new spending in just three departments alone.

Both Clement and Ambrose said the new agency is part of the government’s commitment to cut federal spending by the billions and eliminate the budget deficit by 2014.

About 8000 staff, including 1000 from Public Works, will begin reporting to the new agency.