Rigour and accountability lacking in procurement processes to update call centre technology
Procuring Technology for Call Centres
Report metadata
- Tabling date:
- Audited entities:
- Canada Revenue Agency
- Employment and Social Development Canada
- Immigration, Refugees and Citizenship Canada
- Shared Services Canada
- Topics:
- Public service
- Science and technology
- Information management
- Report type
- Auditor General reports
At a glance
In 2013, Shared Services Canada began work to acquire and deploy a modern telephony system infrastructure to support 220 federal public‑facing and internal call centres. In 2015, the department awarded IBM Canada a 10‑year contract, with 2 additional option years, for the Hosted Contact Centre Service. Starting in 2019, Shared Services Canada moved to alternative approaches to support the call centres that had not migrated to the Hosted Contact Centre Service. By 2020, the department had onboarded 8 call centres to the Hosted Contact Centre Service for $52 million in implementation costs, 3 times the initial budget.
During our 2025 audit of the Canada Revenue Agency’s contact centres, we identified weaknesses in Shared Services Canada’s management of the Hosted Contact Centre Service contract. This audit builds on that earlier work, focusing on the 2015 Hosted Contact Centre Service contract and on the contracts for a new standardized cloud‑based contact centre solution for call centres, known as a Contact Centre as a Service, which were put in place in 2025.
We found that weaknesses in the Hosted Contact Centre Service procurement process affected the cost and scope of the project. An error in the costing information required bidders not to account for the full cost of data storage across call centres. Although Shared Services Canada was aware of the issue, it did not correct it, choosing instead to amend the contract after it was issued to change how data storage fees would be calculated and removing some intended features of the call centre system.
For the Contact Centre as a Service, delays in procurement planning created pressure to extend existing Hosted Contact Centre Service arrangements and pursue the deployment of replacement solutions under constrained timelines. The Hosted Contact Centre Service system will reach its end of life and will no longer be usable after December 2028.
Key facts and findings
- As of March 2026, approximately $180 million had been spent for the Hosted Contact Centre Service contract. The Hosted Contact Centre Service deployment cost increased to $52 million, 3 times its initial estimate.
- After exercising the 2 option years and issuing a subsequent 14‑month extension, the overall value of the Hosted Contact Centre Service contract will reach $251 million through 2028.
- Shared Services Canada did not exercise rigorous controls over payments under the Hosted Contact Centre Service contract, as invoiced amounts were not verified as required.
- Procurement files relating to the Contact Centre as a Service call centres’ contracts had gaps in documentation. While these documentation gaps did not change the outcome of the process or impact vendor selection, they represent opportunities to improve rigour and accountability.
Why we did this audit
- Awarding a contract requires evaluating multiple criteria, including cost and the vendor’s ability to meet the requirements.
- Delays in planning and procuring a replacement system increase the risk of service interruptions to Canadians.
- Delays in procurement planning can result in prolonging existing contracts and systems, affecting opportunities to adopt more effective or innovative solutions.
Recommendation
- Given the importance of government call centres in providing service to Canadians, Shared Services Canada should implement changes to prioritize and efficiently complete the replacement of call centre systems before existing contracts expire. It should be done in consultation with partner organizations, internal experts, and external parties.
Please see the full report to read our complete findings, analysis, recommendations and the audited organizations’ responses.
Exhibit Highlights
Exhibit 1—The Hosted Contact Centre Service contract values, 2015 to 2028
| Period | Value |
|---|---|
| 2015 to 2025 (system used from 2018 to 2025) | $190 million |
| 2026 to 2027 (option years) | $25 million |
| 2028 (Hosted Contact Centre Service 14‑month extension) | $36 million |
| Total | $251 million |
Exhibit 2—The Hosted Contact Centre Service contract value increased from $50 million to $251 million
Text version
Exhibit 2— The Hosted Contact Centre Service contract value increased from $50 million to $251 million
This chart with dots shows the following Hosted Contact Centre Service contract values:
- October 2015: $50 million
- January 2019: $104 million
- December 2019: $105 million
- December 2019: $106 million
- March 2020: $109 million
- May 2020: $114 million
- February 2021: $116 million
- September 2022: $128 million
- March 2023: $129 million
- June 2023: $190 million
- March 2024: $214 million
- March 2026: $251 million
Note: Only the amendments that changed the value of the contract are presented.
Source: Based on information from Shared Services Canada
Exhibit 3—The Contact Centre as a Service deployment plans are very tight
Text version
Exhibit 3— The Contact Centre as a Service deployment plans are very tight
- Planning: September 2013 to February 2014
- Contract solicitation, evaluation, and award: March 2014 to October 2015
- Implementation and deployment: November 2015 to June 2018 (for 8 call centres); additional call centres were onboarded afterward
- System live: July 2018 to end of contract
Contact Centre as a Service—Employment and Social Development Canada plan:
- Planning: December 2022 to October 2024
- Contract solicitation, evaluation, and award: October 2024 to April 2025
- Implementation and deployment: May 2025 to June 2027
- System live: July 2027 and onward
Contact Centre as a Service—Canada Revenue Agency plan:
- Planning: September 2024 to December 2024
- Contract solicitation, evaluation, and award: January 2025 to July 2025
- Implementation and deployment: August 2025 to June 2027
- System live: July 2027 and onward
Contact Centre as a Service—Immigration, Refugees and Citizenship Canada plan:
- Planning: June 2024 to December 2024
- Contract solicitation, evaluation, and award: January 2025 to July 2025
- Implementation and deployment: August 2025 to March 2027
- System live: April 2027 and onward
A dotted line through the timeline marks each the following:
- The end of the original HCCS contract: October 2025
- The end of the HCCS option years included in the initial contract: October 2027
- System live based on HCCS experience: October 2028
- The end of the HCCS contract extension: December 2028
Source: Based on information from Shared Services Canada, Canada Revenue Agency, Employment and Social Development Canada, and Immigration, Refugees and Citizenship Canada