Procuring Technology for Call Centres

Rigour and accountability lacking in procurement processes to update call centre technology

 

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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

Page details

2026-10-29