Case Study

Local Government Super

Moving from traditional on-premise to the cloud gave LGS the flexibility they needed to scale.

The Situation

Local Government Super (LGS) is an industry superannuation fund primarily servicing those employed in the local government sector. LGS manages approximately $9 billion in superannuation assets for around 90,000 members, including 60,000 employees working for local government or related employers throughout NSW.

A change in strategic direction for the organisation meant a complete redesign of its IT infrastructure. This change affected LGS’ head office in Sydney and eight regional offices around New South Wales.

At the time, the existing IT infrastructure was outsourced completely. When the outsourced IT provider was acquired by another organisation that did not have IT as its core business offering, LGS decided to review its current model.

“IT was one of those areas we were looking at to improve how LGS operates now and into the future,” said Kim Heng, Head of Projects and IT at LGS.

“Our IT needs to be seamless so the business can focus on servicing our members best. To meet the organisation’s change in strategic direction, LGS decided to transfer services providers, develop their own in-house capabilities to service the needs of their directors and employees, and ensure the Prudential Regulations and Standards—requiring superannuation trustees have a close relationships with service providers—were met.”

The Solution

In late 2013, LGS put to tender its IT requirements. After a detailed tender process, LGS chose to partner with Brennan IT in mid-2014.

“Brennan IT was in competition with several other IT service providers. After reviewing their proposal, we felt that its business model was an appropriate fit for LGS,” said Heng.

The whole-of-business project involved designing an IT architecture that would support LGS’ head office in Sydney and eight regional offices across New South Wales. It also needed to be scalable to assist the fund’s growth while meeting APRA requirements.

This included changes to networking, telephony and mobile device management, printing, disaster recovery, backup and recovery, and server infrastructure.

As a result, the project entailed a complete overhaul of the IT back end while the front end remained largely unaltered. Apart from the new phone handsets, an updated Outlook program and a different login to Citrix, the transition was quite seamless for our users—this was a significant achievement for a project that generated such a widespread change across all LGS divisions,” said Heng.

The migration to the new environment in November 2014 didn’t go exactly as planned. With a large project roll out set to affect the entire business there were some hiccups which caused minor delays, however Heng states that “Brennan IT Team were persistent and resilient in resolving the issues” Heng pointed to the communication skills of the Brennan IT team as a factor in making things easier. “Having a good team on the project definitely helped. The team was responsive and highly proficient. When the scope did change, we worked together through the issues.”

The Benefits

Almost a year on, Heng says moving from a traditional model to a cloud-based solution gave LGS the flexibility to scale. The move to the cloud also ties in better with their disaster recovery and business continuity requirements, and the telephony solution implemented improved communications significantly.

“There’s a cost saving element to having cloud, but also an efficiency and productivity gain,” she noted. “The time to market for new business ideas has improved.”

The flexibility doesn’t just work for making the IT architecture scalable as the business grows and changes, it’s also part of the business continuity component.

“The way it has been designed has allowed us opportunities, when we do have issues, to navigate them in different ways. It has been quite flexible in supporting the business that way. The solution was the appropriate solution for LGS.”

“Our next step is having Brennan IT as our IT partner for our corporate platform. Based on our experience to date, we anticipate that they will continue to work proactively with LGS in delivering innovative solutions so we keep abreast of the prolific changes that are occurring in the IT infrastructure and application space.”

To find out more about Local Government Super, click here.

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