Case Study: Australian Taxation Office achieves improved visibility and streamlined IT contractor management with SAP Fieldglass

The Australian Taxation Office Achieves Improved Visibility into its External IT Labor Hire Engagements

The Australian Taxation Office (ATO), Australia’s main revenue collection agency, manages a distributed workforce that includes employees, temporary staff, external IT and non-IT workers and service providers working under SOWs. Facing strict federal compliance requirements and a need for better visibility into external resources, costs and procurement processes, the ATO sought a single system to standardize contractor engagement, improve oversight and create more efficient onboarding and payment workflows.

The ATO implemented SAP Fieldglass’ Vendor Management System in 15 weeks, launching with ~300 IT workers, and used change management to onboard stakeholders and suppliers. The VMS delivered rapid visibility and automation—faster mobilization, improved contractor engagement and stronger supplier relationships—while keeping internal panel management staffing almost unchanged. Measurable results include IT contractor growth from 180 to 370 (spend rising from AUD 32M to ~AUD 70M), automated weekly supplier payments and RCTI reconciliation, a reduction of two staff in invoice processing, monthly cost savings of about AUD 210K and total avoided costs near AUD 5M; the ATO plans to extend the solution to non‑IT labor and services.

Australian Taxation Office

Craig Fox

First Assistant Commissioner, Service Operations Division