Standing Senate Committee on National Finance: 2026–27 Main Estimates

Opening statement

Scott Davis
Assistant Deputy Minister, Chief Financial Officer (CFO)
Shared Services Canada

Ottawa, Ontario
April 15, 2026

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Greeting

Thank you, Mr. Chair, for the opportunity to discuss Shared Services Canada’s 2026–27 Main Estimates.

Before I begin, I would like to acknowledge that we are gathered on the unceded and traditional territory of the Algonquin Anishinaabe Nation.

I am accompanied by Patrick Comtois, Director General for Enterprise Information Technology (IT) Procurement Enablers and Cloud.

Role and impact

Shared Services Canada (SSC) modernizes and operates the Government of Canada’s core IT infrastructure. This includes the connectivity services, cyber security services, digital services and hosting services that enable departments to deliver on their mandates.

This technology underpins programs and benefits, public safety and national defence. It supports everything from benefits delivery and border security to emergency response.

In short, without this IT infrastructure, many services to Canadians would be disrupted or could not be delivered at all. In addition, as a common IT service provider, SSC helps reduce costs through scale, standardization and government-wide buying power, while improving reliability, security and interoperability across government systems.

2026–27 Main Estimates

Mr. Chair, in the 2026–27 Main Estimates, SSC is seeking $2.36 billion.

This is a net decrease of $128.6 million compared to 2025–26.

This overall reduction is due to the Comprehensive Expenditure Review and adjustments to multi‑year funding profiles, including the sunsetting of time‑limited funding approved in previous years.

The Main Estimates request $101.4 million in new funding. This includes:

• support for core IT services across departments, such as networks, workplace technology devices and digital services that departments rely on every day to serve Canadians and support public servants; and
• a project to automate and accelerate large parts of the security monitoring process, allowing us to better predict, detect and respond to cyber threats.

SSC is also seeking an increase to its Vote-Netted Revenue authority. The associated revenue will fully offset costs, resulting in no net impact on funding, while providing greater flexibility to respond to client demand.

Transformation

Mr. Chair, SSC plays a central role in delivering the government’s agenda for digital transformation, efficiency and the responsible deployment of artificial intelligence (AI) tools and automation.

This includes ensuring digitally sovereign solutions amid increasing geopolitical uncertainty.

SSC is working closely with departments and agencies to apply emerging technologies such as AI, chatbots, automation and predictive analytics to modernize operations, reduce costs and improve service delivery for Canadians.

This work includes SSC’s in-house generative AI tool, CANChat—a secure platform for public servants that supports productivity while ensuring that data remains in Canada and is hosted on government-accredited infrastructure. We are preparing for broader deployment across government beginning this spring.

These and other initiatives require sustained investment but are essential to building a more resilient, secure and innovative digital government while maintaining uninterrupted delivery of existing services.

Over the years, SSC has absorbed inflationary pressures and rising demand by leveraging efficiencies and economies of scale. However, the growing volume and complexity of IT requirements, particularly related to cyber security and AI, mean additional resources are needed to manage operational risk and sustain effective service delivery.

SSC is also reviewing all aspects of its IT procurement through benchmarking, prioritizing Canadian vendors, and ensuring best value for Canada, with a focus on lifecycle costs, performance and resilience.

We have also implemented the Buy Canadian Policy to strengthen domestic innovation and digital capacity by prioritizing Canadian suppliers, materials and content whenever feasible, while remaining compliant with trade obligations.

Conclusion

In conclusion, SSC will continue to deliver and strengthen essential digital services that Canadians depend on every day, while advancing secure, efficient and innovative government operations.

Thank you, Mr. Chair. I welcome your questions.

Main Estimates Overview 2026–27
Shared Services Canada

Shared Services Canada (SSC) is seeking a total of $2.36B through the 2026‑27 Main Estimates to support its role as the information technology (IT) service provider for the Government of Canada (GC). This amount represents a net decrease of $128.6M, compared to the 2025‑26 Main Estimates of $2.49B. The available funding for 2026‑27 is net of $1,063M in revenue.

The net decrease in SSC’s reference levels includes:

• $101.4M in new funding for IT services and initiatives
• ($0.9M) in transfers between departments
• ($240.0M) in other adjustments related to the Comprehensive Expenditure Review as announced in Budget 2025 and adjustments for changes in funding profiles for multi‑year initiatives and projects, offset by an increase for compensation adjustments
• $10.9M for Employee Benefit Plan (EBP) adjustments

The main contributors to the overall decrease are the budget reductions from Budget 2025’s Comprehensive Expenditure Review, offset by new funding for IT services and for the Security Information and Event Management solution.

New funding: $101.4M increase

(A) Funding for Core IT Services

$63,908,569

Purpose

The funding of $63.9M is to support the onboarding of new full-time equivalents (FTE) with core IT services, such as uniform network services, software and hardware for workplace technology devices, and technology-related services.

(B) Funding for Security Information and Event Management solution

$37,512,449

Purpose

The funding of $37.5M will support the procurement of a new enterprise Security Information and Event Management solution, which will automate cyber threat detection and response across GC networks.

Transfers: ($0.9) decrease

(C) Transfers between SSC and Other Organizations

Transfer of ($883,097)

Purpose

Transfers between SSC and other organizations for various initiatives totalling a decrease of ($0.9 million) for 2026‑27:

• Transfer from PSPC of $6.4 million for the CanAI Garage initiative
• Transfer from various organizations of $3.1 million for Microsoft 365 E5 license requirements
• Transfer from PSPC of $0.9 million for reimbursement related to reduced accommodation requirements as a result of data centre consolidations
• Transfer to TBS of ($0.05 million) for contributions to the Communications Community Office
• Transfer to the RCMP of ($0.1 million) for law enforcement record checks required by SSC’s security screening program
• Transfer to various organizations of ($1.0 million) for the management of forensic software licenses
• Transfer to various departments ($10.1 million) related to the Government IT Operations (Enterprise Service Model) for revenue in lieu of appropriation

Other Adjustments: ($240.0 M) decrease

(D) Reductions to implement the Comprehensive Expenditure Review

($156,364,940)

Purpose

A total decrease of ($156.4 million) due to the reductions to implement the Comprehensive Expenditure Review as announced in Budget 2025. SSC has committed to achieve savings by:

• Driving efficient enterprise solutions and controlling consumption
• Reducing reliance on legacy systems
• Artificial intelligence, automation and modernizing business processes
• Reducing dependence on professional services

(E) Adjustments in Funding Related to Multi-year Initiatives and Projects

($85,779,637)

Purpose

A net decrease of ($85.8 M) due to changes to funding profiles for multi-year initiatives and projects.

The changes are a result of time-limited funding or variations in funding from year-to-year. These adjustments are due to:

• An increase of $26.7 million for Safeguarding Access to High Performance Computing equipment for Canada’s Hydrometeorological Services due to changes in the funding profile
• A decrease of ($31.3 million) for Secure Cloud Enablement and Defence Evolution and Departmental Connectivity and Monitoring initiative due to changes in funding profile
• A net decrease of ($18.0 million) related to the Refocusing GC Spending (Budget 2023 Reductions) representing additional reductions from 2024‑25 for operating efficiencies and non-standard legacy services
• A decrease of ($16.3 million) for Canada's 2025 G7 Presidency due to time-limited funding
• A decrease of ($6.6 million) for Cyber and Information Technology Security Projects due to changes in funding profile
• A decrease of ($0.6 million) for the Standardization of Mandatory Network, Security and Digital Services for Small Departments and Agencies due to changes in funding profile
• A net decrease of ($39.7 million) for various projects and initiatives such as time-limited funding for core IT services, compensation adjustments, and transfers with other departments

(F) Compensation adjustments

$2,162,203

Purpose

An increase of $2.2 million for compensation adjustments resulting from recently concluded collective agreements and updated terms and conditions of employment.

Statutory appropriations: $10.9 M increase

(G) Employee Benefit Plan

$10,835,272

Purpose

The increase to SSC’s statutory appropriations of $10.9 M is related to EBP contributions resulting from adjustments for the following:

• A total of $11.4 M (Statutory) related to new items:
  • An increase of $11.3 million (Statutory) related to a comprehensive adjustment to the EBP rate from 15.3% to 16.4%
  • An increase of $1.6 million related to transfers with other departments
  • An increase of $1.0 million (Statutory) for EBP related to the Security Information and Event Management Solution as announced in the Fall Economic Statement 2022
  • An increase of $0.4 million (Statutory) for EBP related to appropriations for compensation adjustments for newly signed collective agreements; offset by
  • A decrease of ($2.9 million) (Statutory) for the cost of EBP related to the Comprehensive Expenditure Review
• A net decrease of ($0.5 M) (Statutory) in EBP related to multi-year initiatives and projects where salary funding profiles changed

Net NIL Effect

(H) VNR

$270,000,000

Purpose

• An increase of $210.0 million in operating VNR Authority:
  • An increase of $100.0 million due to rising service volumes driven by activities to support the DND’s operational and modernization priorities
  • An increase of $110.0 million to support the management of the software and services agreement on behalf of the GC
• Extension of the existing $60.0 million capital VNR authority that allows SSC to treat capital recoveries as respendable revenue from April 1, 2026 to March 31, 2029.
  • Respendable revenues are a type of revenue that, once received, increases departmental spending authority.

Artificial intelligence

Issue

Artificial intelligence is considered a foundational technology, which stands to propel significant social and economic change. Shared Services Canada is exploring how to use new technologies like artificial intelligence to support government work.

Key facts

• N/A

Key messages

• By adopting artificial intelligence, the Government of Canada will transform government operations and support a more efficient and effective public service.
• Shared Services Canada is playing a leading role in digital transformation across the Government of Canada, facilitating the adoption and scaling of artificial intelligence across the public service. Shared Services Canada is:
  • developing a sovereign made-in-Canada artificial intelligence platform that can be deployed across the government in partnership with leading Canadian artificial intelligence companies, the Department of National Defence and the Communications Security Establishment
  • leading a competitive procurement process for generative artificial intelligence productivity tools for government employees, which includes five Canadian pre-qualified vendors
  • enabling access to sovereign artificial intelligence compute capacity for public and private research, in collaboration with the National Research Council Canada
  • applying artificial intelligence and automation across internal operations to automate common information technology support requests, reducing call volumes and costs while improving the user experience

If pressed on Shared Services Canada’s artificial intelligence initiatives

• Shared Services Canada is building foundational tools using in-house artificial intelligence experts, reducing dependency on contractors, lowering costs and keeping knowledge within government.
• Shared Services Canada has fine-tuned large language models on Canadian content to ensure that artificial intelligence tools reflect Canadian context, values and priorities.
• Shared Services Canada is scaling CANChat, a generative artificial intelligence tool it developed in-house. This is a safe and secure artificial intelligence platform for public servants, ensuring that Government of Canada data remains in Canada, is hosted on government-accredited infrastructure, and is not accessible by foreign service providers. The department is working to begin deployment across the Government of Canada this spring.
• Shared Services Canada is leading a competitive procurement process for generative artificial intelligence productivity tools for government employees, which includes five Canadian pre-qualified vendors
  • Shared Services Canada has finalized a government-wide procurement of generative artificial intelligence tools that integrate with the Microsoft 365 office productivity suite. Shared Services Canada has established five framework agreements to date, all of which are with Canadian vendors.
• Shared Services Canada is expanding the infrastructure, skills and expertise to support artificial intelligence adoption, including making commercial artificial intelligence tools available, creating an artificial intelligence marketplace for sharing resources and helping to establish a secure and sovereign supercomputing facility for advancing artificial intelligence research.
• Shared Services Canada operates the artificial intelligence Centre of Excellence, which supports departments and agencies in applying artificial intelligence, shares best practices, contributes to policy development and fosters collaboration through peer reviews and working groups.
• The Government of Canada is committed to ensuring the responsible use of artificial intelligence and ensuring it is governed by clear values, ethics and rules.

If pressed on jobs

• Artificial intelligence is meant to support the work of public servants, not replace them. It can assist with routine and repetitive tasks so employees can focus on work that needs creativity, problem-solving and human judgment. This can increase agility, efficiency and retention by automating routine and time-consuming tasks.

If pressed on memoranda of understanding for artificial intelligence

• The Government of Canada recently signed a memorandum of understanding with Cohere Inc. to explore opportunities for deploying artificial intelligence in internal government operations and to strengthen digital sovereignty through a made-in-Canada digital and artificial intelligence ecosystem. Shared Services Canada’s efforts to define requirements for sovereign cloud hosting services furthers this work.

Background

To guide the responsible use of artificial intelligence, the Treasury Board of Canada Secretariat released key resources, including the Directive on Automated Decision-Making, the Guide on the use of generative artificial intelligence and the Algorithmic Impact Assessment tool.

Digital sovereignty

Issue

Digital sovereignty refers to the Government of Canada’s ability to exercise autonomy over its digital assets and services, ensuring it can manage and protect its digital systems, data and information regardless of where technologies are developed, hosted, or supported. This protects national security, supports economic competitiveness and enables the Government of Canada to operate independently while reducing the risks of foreign interference in the digital age.

It includes:

• Data sovereignty: Ensuring data complies with national laws and remains under the jurisdiction and control of the country
• Operational sovereignty: Retaining control over how digital services are deployed and preventing reliance on, or interference from, foreign entities
• Technological sovereignty: Maintaining the ability to make independent decisions about technology without being overly dependent on monopolistic or foreign‑controlled vendors

Key facts

• Under the Directive on Service and Digital, departments and agencies are expected to prioritize computing facilities in Canada—or on Government of Canada premises abroad—for storing or handling sensitive electronic information, such as Protected B, C or classified data. This helps keep important data secure and under Canadian control.
• Under the Policy on Privacy Protection, departments and agencies must protect personal information properly, reduce privacy risks and remain open and accountable, even when it is processed or stored by third-party companies.
• The Treasury Board Secretariat’s paper Digital Sovereignty: A Framework to improve digital readiness of the Government of Canada examines the challenges related to jurisdictional complexity, reliance on global suppliers, evolving cyber security risks, and internal capacity. It underscores the need for interoperability across the Government of Canada and with trusted international partners. The framework discusses legal issues, supply chain, and technical controls that reinforce Canada’s authority over government systems.
• Shared Services Canada applies the Buy Canadian Policy in procurements to strengthen Canada’s economic resilience and industrial capacity. The policy supports domestic businesses and workers by prioritizing Canadian suppliers, materials and content wherever feasible.
• Data protection obligations are embedded in contracts with service providers through standardized security clauses, access restrictions and incident reporting requirements.

Key messages

• Digital sovereignty is a critical priority for the Government of Canada to protect essential data, reduce risks of foreign interference and strengthen domestic information technology capabilities and Shared Services Canada has been actively working to strengthen information technology diversification by reducing vendor concentration and influence in strategic areas, while promoting Canadian-made solutions.
• Shared Services Canada will also develop a sovereign made-in-Canada artificial intelligence platform that can be deployed across the government, in partnership with leading Canadian artificial intelligence companies, and enable greater access to sovereign artificial intelligence compute.
• Shared Services Canada is investing in Canadian technology capabilities and strengthening policies to protect critical infrastructure.
• Shared Services Canada has launched a procurement process to establish Sovereign Canadian Cloud capabilities for the Government of Canada through a process that prioritizes Canadian-owned and controlled cloud service providers. These efforts will secure Canadian capacity as part of the Government of Canada cloud ecosystem.

If pressed on protections

• The Government of Canada applies a range of technical safeguards to protect data, maintain service reliability and ensure continued operation of its systems. These include secure system design; encryption to protect information in storage and in transit; access and identity management; and continuous monitoring to detect and respond to incidents.

If pressed on how Shared Services Canada strengthens digital sovereignty

• Shared Services Canada works with Canadian telecommunications companies to provide the Government of Canada with a fast, reliable network that operates on Canadian-owned assets and routes traffic within Canada. This helps keep sensitive government data secure and under Canadian control.
• Shared Services Canada uses state-of-the-art enterprise infrastructure and multiple layers of defence, including cutting-edge sensors designed to identify and eradicate cyber threats.
• Shared Services Canada delivers hybrid hosting models to meet the Government of Canada’s needs for security, scalability and sovereignty. Hosting models range from fully Government of Canada-owned data centres (maximum sovereignty) to public cloud services (lower control, higher scalability).
• Shared Services Canada’s enterprise data centres are located within Canada and operate on Canadian-owned assets. This helps keep important data secure and under Canadian control.

Background

Due to the global dominance of U.S.-based technology vendors and the comparatively small size of Canada’s information technology (IT) sector, targeted interventions are essential to scale Canadian capabilities. Cloud computing, in particular, is dominated by Amazon Web Services, Google Cloud and Microsoft Azure, posing challenges to operational and technological sovereignty.

Advanced cyber threat actors are increasingly using supply chains to bypass traditional security defences by introducing vulnerabilities. Since 2012, Shared Services Canada (SSC) has mitigated this risk through Supply Chain Integrity (SCI) procurement reviews for equipment, software and services. These assessments help departments and agencies to identify and potentially mitigate security vulnerabilities before they impact operations.

The Government of Canada (GC) has made strategic investments in Canadian IT firms, including a March 2025 announcement by Innovation, Science and Economic Development Canada (ISED) of up to $240 million in funding for Toronto-based Cohere Inc. This investment marks Cohere as the first recipient of the artificial intelligence (AI) Compute Challenge, part of the $2 billion Canadian Sovereign AI Compute Strategy. In August 2025, the GC signed a memorandum of understanding with Cohere to explore opportunities for deploying AI technologies across the GC to enhance operations within the public service and to build out Canada’s commercial capabilities in using and exporting AI.

Government transformation

Issue

As the Government of Canada’s common information technology services provider, Shared Services Canada plays a central role in driving government transformation and creating government-wide efficiencies—in close collaboration with the Treasury Board of Canada Secretariat’s Office of the Chief Information Officer and Public Services and Procurement Canada.

Key facts

• N/A

Key messages

• The Government of Canada is committed to transformation, and increasing government productivity while reducing the cost of operations. A more effective and efficient government will result in improved program and service delivery to Canadians and businesses.
• Shared Services Canada is playing a key role in digital transformation across the Government of Canada, by facilitating the adoption and scaling of artificial intelligence across the public service. Shared Services Canada will also achieve $318.5 million in ongoing savings through efficiencies in its internal operations.
• Aligned to the Government of Canada priority to modernize the way government procures goods and services, Shared Services Canada is reviewing all aspects of its information technology procurement by undertaking benchmarking, prioritizing Canadian vendors and sovereign infrastructure and services, and ensuring best value for Canada.
• Shared Services Canada is enabling artificial intelligence across government by:
  • developing a sovereign made-in-Canada artificial intelligence platform that can be deployed across the government in partnership with leading Canadian artificial intelligence companies, the Communications Security Establishment and the Department of National Defence
  • leading a competitive procurement process for generative artificial intelligence productivity tools for government employees, which includes 3 Canadian pre-qualified vendors
  • enabling access to sovereign artificial intelligence compute capacity for public and private research, in collaboration with the National Research Council Canada
  • applying artificial intelligence and automation across internal operations to automate common information technology support requests and reduce call volumes and costs, while improving the user experience
• Shared Services Canada is transforming the government’s hosting infrastructure from a sprawling landscape of siloed and outdated systems to modern hosting solutions. This new model combines cloud services and traditional on-premise data centres to optimize performance, reduce costs and provide flexibility.
• Shared Services Canada will advance a common government-wide desktop solution to transition departments to a standardized, cloud-managed desktop service. This will reduce complexity, standardize information technology security, increase portability and result in significant cost savings for Canadians.
• Shared Services Canada also supports the government’s broader digital transformation agenda through partner-led projects and initiatives, including enabling access to sovereign artificial intelligence compute capacity in collaboration with the National Research Council; ongoing work to improve human resources and pay for federal public servants; and enabling the Department of National Defence to modernize their systems to support the Canadian Armed Forces at home and abroad.

If pressed on cost savings

• Under the Comprehensive Expenditure Review, Shared Services Canada will meet up to 15% in savings targets over 3 years, achieving ongoing savings of $318.5 million.
• Specifically, Shared Services Canada will:
  • standardize platforms, including realigning enterprise software offerings to match current needs
  • eliminate low-use or redundant licences
  • eliminate non-essential telephone fixed lines in all Government of Canada buildings, which will reduce expenses, and deploy cost-effective softphones to all workers
  • review, consolidate and renegotiate contracts to eliminate duplication, secure better pricing and align spending with enterprise needs
  • leverage emerging technologies to automate repetitive tasks, use artificial intelligence-driven tools to optimize operations and service delivery, automate common information technology support requests to reduce call volumes and costs while improving user experience
  • build its in-house capacity and expertise to reduce spending on external consultants and contractors for ongoing operations
  • simplify the Government of Canada cloud footprint by consolidating over 287 departmental partner cloud environments into Government of Canada Cloud One, Shared Services Canada’s enterprise cloud
  • reduce and rationalize the remaining 190 legacy data centres across Canada into 4 enterprise data centres, 1 High Performance Computing Centre, 5 consolidation data centres, and approximately 50 edge computing sites

Background

Shared Services Canada is responsible for modernizing, securing and managing the information technology (IT) infrastructure that supports departments and agencies. This ensures reliable and effective service delivery to Canadians, both domestically and abroad. The Treasury Board of Canada Secretariat’s Office of the Chief Information Officer sets government-wide direction for data, IT, cyber security and service management, while individual departments and agencies remain responsible for their own applications and data.

Cyber security

Issue

The Government of Canada, like all organizations worldwide, faces ongoing cyber threats from bad actors, on a national and international level, that require constant attention and strong security measures. Cyber threats are becoming more complex and sophisticated. These include criminal activities such as ransomware attacks and attacks by state-sponsored adversaries.

Key facts

• The number of cyber events blocked by Shared Services Canada varies from day to day and from year to year. In 2025, Shared Services Canada blocked approximately 7.7 trillion cyber events, representing an average of 21.02 billion events a day.
• Investments in strong cyber security systems reduce the costs associated with service disruptions and recovery.

Key messages

• Together, Shared Services Canada and the Communications Security Establishment’s Canadian Centre for Cyber Security (the Cyber Centre) provide sophisticated cyber security tools, including proprietary sensors that provide additional defence beyond industry capabilities and have no commercial equivalent.
• Shared Services Canada provides state-of-the-art enterprise infrastructure and employs modern commercial cyber security solutions to defend Government of Canada systems against a wide range of cyber threats.
• Shared Services Canada employs multiple layers of cyber security defences, including firewalls, network defences, anti-denial of service measures, anti-virus and anti-malware tools, encryption, virtual private networking and robust identification and authentication services.
• Shared Services Canada is actively reducing security vulnerabilities by consolidating, standardizing and modernizing information technology systems across the Government of Canada.
• To strengthen data protection, Shared Services Canada is implementing zero-trust principles—minimizing reliance on implicit trust within networks and deploying modern, industry-leading security solutions.
• In consultation with the Treasury Board of Canada Secretariat and the Communications Security Establishment, Shared Services Canada integrates security and privacy by design when developing new services.

If pressed on supply chain integrity

• Together with the Cyber Centre, Shared Services Canada has completed over 83,000 Supply Chain Integrity reviews since 2012 to help ensure that components used in systems do not compromise safety or security.

If pressed on quantum computing

• A quantum computer capable of compromising many cryptographic standards could be available in the next 5 to 8 years.
• Departments and agencies will be required to develop customized migration plans to transition their systems to post-quantum cryptography. Shared Services Canada is developing a comprehensive strategy to ensure its enterprise solutions align with the cryptographic recommendations from the Cyber Centre.

If pressed on small departments and agencies

• Shared Services Canada is working with 43 small departments and agencies to deliver a targeted set of secure information technology services. By the end of 2024‑25, 23 small departments and agencies had fully transitioned to government-managed Internet and remote access services, while 15 had adopted the shared government email system.
• By the end of 2026‑27, all remaining eligible small departments and agencies are expected to fully transition.

If pressed on provincial and territorial cooperation

• In September, all 14 federal, provincial and territorial jurisdictions signed a historic cyber security agreement to share real-time intelligence, tools and services to counter cyber threats.
• The agreement strengthens Shared Services Canada’s cyber security posture through secure intergovernmental collaboration on threat intelligence and incident response.

Background

Cyber security is a shared responsibility across the Government of Canada (GC):

• The Treasury Board Secretariat (TBS) sets government-wide cyber security policies and leads the response to major cyber incidents.
• Shared Services Canada (SSC) builds and manages secure information technology (IT) systems, monitors key applications and ensures new services are designed with security and privacy in mind.
• The Communications Security Establishment (CSE) is the lead agency for cyber security. It provides defensive capabilities that are not currently available commercially, adding an additional layer of defence unique to the GC.
• All departments and agencies must protect their own systems and applications.
• Public Safety Canada leads the National Cyber Security Strategy, working with partners outside government to protect Canadians and businesses.
• The Royal Canadian Mounted Police (RCMP) investigates cyber crimes that target government systems.
• The Canadian Security Intelligence Service (CSIS) gathers intelligence on threats to national security and supports departments through security screening and foreign intelligence.
• The Canadian Armed Forces (CAF) shares cyber threat intelligence with allies and conducts foreign cyber operations.

The GC Cyber Security Event Management Plan (GC CSEMP) outlines how different departments respond to cyber incidents. Smaller issues are handled by the affected department, while serious ones are managed by teams led by TBS and the Cyber Centre. SSC’s responsibilities during a cyber security event include watching for unusual network activity, blocking cyber threat activity, assessing service impacts, reporting through the Cyber Centre and implementing prevention, mitigation and recovery efforts, such as emergency patching and isolating infrastructure.

Shared Services Canada’s 2026–27 Departmental Plan

Issue

Shared Services Canada’s 2026‑27 Departmental Plan outlines the department’s mandate and details its commitments, priorities and expected results for the coming fiscal year.

Key facts

Category	2023‑24 (Actual)	2024‑25 (Actual)	2025‑26 (Forecast)	2026‑27 (Planned)	2027‑28 (Planned)	2028‑29 (Planned)
Spending (millions)	$2,791	$2,617	$2,699	$2,362	$2,266	$2,101
Employees (full-time equivalents)	9,276	9,346	8,928	8,796	8,656	8,344

Key messages

• Shared Services Canada is driving digital enterprise solutions that will transform how government works—improving the speed, reliability and cost effectiveness of enterprise services.
• Shared Services Canada is modernizing enterprise application integration and common digital platforms to reduce duplication, retire legacy systems and enable departments to deliver services more efficiently and cost effectively.
• Shared Services Canada is advancing artificial intelligence by building infrastructure, piloting automation use cases, developing Canadian-centric artificial intelligence tools, and establishing governance frameworks to ensure privacy, security and innovation.
• SSC is equipping public servants with modern, standardized digital tools that improve how they work and enhance service delivery to Canadians.

If pressed on specific initiatives for 2026‑27

Digital Services

Shared Services Canada will support digital transformation across the Government of Canada by:

• advancing the Enterprise Desktop Solution proof-of-concept with up to 10 departments, which will replace the separate management of desktops by each department with modern, unified desktop management across the Government of Canada. This will reduce duplication, lower costs and enhance security.
• rolling out softphones (Internet-based phones) to all departments, which will reduce telephony costs; eliminating an additional 100,000 traditional fixed telephone lines; and targeting a 50% reduction in the number of mobile devices across the Government of Canada.
• expanding the Protected B secure messaging solution to approximately 50,000 government-issued devices, strengthening digital sovereignty, enhancing security and reducing reliance on foreign-hosted cloud services.
• centrally procuring and testing off-the-shelf generative artificial intelligence productivity tools for use across government to help automate and streamline common tasks.
• transitioning the Government of Canada’s in-house generative artificial intelligence chatbot, CANChat, into an enterprise service and increasing its security level to Protected B, providing enhanced artificial intelligence-driven capabilities to employees.
• advancing an enterprise-wide approach to financial management through a common digital solution instead of many different solutions.

Hosting

Shared Services Canada will strengthen digital sovereignty and improve efficiency by:

• developing a backup capability—enabling data recovery in the event of failure or loss—that meets data residency and sovereignty requirements to keep data secure and under Canadian control.
• creating a sovereign private cloud environment, starting with core capabilities like compute, storage and networking, and scaling to add additional services over time.
• developing 3 to 5 new standardized enterprise applications, reducing duplication and maintenance costs.
• continuing to work with Environment and Climate Change Canada on its weather supercomputer, a powerful system that supports accurate weather forecasting, air quality alerts and climate modelling.
• continuing and accelerating the migration of legacy applications and data from 150 legacy facilities, building on the closure of more than 500 aging data centres.
• migrating applications from 105 departmental cloud environments into a standardized, secure, Protected B Government of Canada platform.

Connectivity and cyber security

• Shared Services Canada will continue to expand and modernize Government of Canada network infrastructure by:
  • implementing tools (SD-WAN) to intelligently route network traffic, improving speed and service quality.
• Shared Services Canada will also continue to strengthen cyber security across government by:
  • creating a secure classified cloud environment and launching an enterprise platform for secure voice, video and messaging communications.
  • advancing its zero trust framework, which means no user or device is trusted automatically, even within the network.
  • using the Endpoint Visibility, Awareness and Security initiative to automatically identify network-connected endpoints—such as desktops and servers—and verify they meet security requirements. The Endpoint Visibility, Awareness and Security will also provide continuous monitoring and automated response to cyber events.
  • deploying a Security Information and Event Management solution to automate and accelerate large parts of the security monitoring process, which will help Shared Services Canada better predict, detect and respond to cyber threats.

Service delivery

• Shared Services Canada will support science by:
  • integrating artificial intelligence and adding other enhancements to the Federal Science DataHub to improve analysis and collaboration.
  • implementing AI-powered search into the Federal Open Science Repository of Canada to improve user experience and the visibility of Canadian science.
• Shared Services Canada will also support partners by:
  • modernizing the Department of National Defence information technology infrastructure to enhance security, resilience and performance, including in remote locations.
  • supporting the integration of Canadian Coast Guard information technology systems with the Department of National Defence to strengthen security and interoperability.
  • leading the development of a new central financial management platform to replace 42 separate aging systems supported by 5 different commercial suppliers, reducing administrative burdens, eliminating duplication and reducing costs.

If pressed on declining spending

• Shared Services Canada’s planned budget decreases from 2026–27 to 2028‑29 are mainly due to the Comprehensive Expenditure Review announced in Budget 2025, as well as decreases to funding for network, security and digital services standardization for small departments and agencies and for high-performance weather computing.
• Shared Services Canada has also reduced spending on professional and special services by $81 million, from $477 million in 2022–23 to $396 million in 2024–25.

Background

Departmental plans provide parliamentarians and Canadians with an understanding of the results the government aims to achieve over the next three years with the resources provided in the Main Estimates. These plans outline each department’s overall program structure, planned financial investments and the human resources allocated to each program and subprogram.

Shared Services Canada’s 2024‑25 Departmental Results Report

Issue

Services Canada’s (SSC) 2024‑25 Departmental Results Report (DRR) provides details on SSC’s mandate, commitments and results.

Key facts

• In 2024‑25, SSC employed 9,346 full-time equivalents (FTEs), had net expenditures of $2,617 million, and met 20 of 25 results indicators.

Key messages

• SSC’s accomplishments in 2024‑25 included:
  • Deploying over 500 Low Earth Orbit satellite terminals
  • Expanding enterprise Wi-Fi to more than 250 government buildings
  • Strengthening cyber defences through the new Secure Cloud to Ground service, Cyber Security Program Management Office, and the implementation of integrated enterprise monitoring tools
  • Expanding the use of artificial intelligence and automation to improve service delivery and internal operations
  • Delivering $20 million in savings through initiatives such as bulk procurement of mobile devices, the rationalization of fixed phone lines, and the deployment of softphones.
• As part of work to incorporate agile procurement principles into its broader contracting, SSC used an agile process for procuring cloud services. This involved iterative solicitation design and development, and collaboration with industry to achieve the best possible outcome for Canadians.
• SSC surpassed the government’s 5% Indigenous procurement target, achieving a result of 9.8%.
• Furthermore, SSC onboarded one-third of the department to Docuverse, a SharePoint solution modernizing business processes. This streamlined collaboration, improved coordination, and strengthened governance.
• SSC launched an efficient and user-friendly Employee Service Portal to automate corporate requests and improve onboarding and offboarding of employees.

If pressed on unmet Departmental Results indicators

• Number of partners that migrated their email in the cloud: target 39
  • Result: 37. For SSC to complete email migrations, partners must complete all the preparatory work. More complex departments took longer than expected, and this caused delays.
• Percentage of time that Enterprise Mobile Device Management (EMDM) service is available: target 99.9%
  • Result: 99.19%. In 2024‑25, there were three EMDM outages due to major infrastructure-related incidents. To mitigate future risks, SSC is working to enhance coordination, improve alerting and monitoring processes, and strengthen validation protocols for third-party infrastructure changes.
• Partner Satisfaction with cloud brokering and cloud advisory services (five-point scale): target 3.6
  • Result: 3.5. While service levels were sustained, the new Application Hosting Strategy changed the accountability for cloud operations from partners to SSC, which may have reduced satisfaction. To address these challenges, improvements are underway to enhance service and streamline cloud intake processes.
• Percentage of SSC-led and customer-led projects rated as on time, on scope and on budget: target 70%
  • Result: 65%. Cybersecurity projects experienced delays due to evolving requirements and the rapid evolution of the cybersecurity landscape. This made it challenging to deliver effectively using traditional waterfall approaches, in which all planning is done at the start. SSC is moving towards Agile project practices, in which planning and delivery are done iteratively.
• Percentage of critical incidents under SSC control resolved within established service level standards: target 60%
  • Result: 55.04%. SSC is addressing three root causes of this outcome. To improve the implementation of improvements to higher complexity systems, SSC is assessing adjustments to its processes. To address extended wait times for replacing hardware, SSC is assessing an emergency replacement service for critical equipment at some sites. To better service remote locations, SSC is investigating opportunities to pre-identify additional remote supports.

Background

The Departmental Results Report informs parliamentarians and Canadians of the results achieved by SSC for Canadians, and the resources used to achieve those results. A retrospective view is provided for 2024‑25 against the plans, priorities and expected results that were set out in the corresponding 2024‑25 Departmental Plan. The Departmental Results Report is based on the approved 2024‑25 Departmental Results Framework and Program Inventory.

Shared Services Canada procurement

Issue

This note explains Shared Services Canada’s general procurement practices and achievements.

Procurement is essential to government operations, ensuring the best value for Canadians. Shared Services Canada plays a central role by managing the purchase of information technology tools and services—software, hardware, and support—for shared government systems.

Key facts

• N/A

Key messages

• Shared Services Canada follows a fair, open and transparent procurement process, guided by well-established rules and controls.
• Most Shared Services Canada contracts are awarded through competitive bidding to ensure best value for Canadians.
• Shared Services Canada occasionally awards non-competitive contracts, which are subject to the same rigorous review as competitive ones, based on their risk and value.
• Justifications for these contracts are grounded in clear criteria, such as urgency, intellectual propriety considerations or national interest.
• SSC is advancing an information technology diversification strategy to increase vendor diversity, reduce reliance on foreign technologies, and promote Canadian-made solutions in our information technology infrastructure and services.

If pressed on Buy Canadian

• Under the new Buy Canadian Policy, departments and agencies prioritize Canadian suppliers and Canadian content in their purchasing decisions.
  • During bid evaluations, eligible Canadian suppliers receive either addition points or credit towards their financial proposal.
  • This currently applies to purchases $25 million or more, and $5 million or more effective June 15, 2026.
• Exceptions are permitted only in specific cases, such as unreasonable cost increases or where application of the policy would not be in the public interest. Exceptions must be approved by the responsible minister and fully documented to ensure accountability and transparency.

If pressed on the interim Policy on Reciprocal Procurement

• The Policy on Reciprocal Procurement limits access to suppliers from countries that restrict Canadian participation in their own government contracts. It builds on the existing Interim Policy on Reciprocal Procurement.
• It prioritizes Canadian suppliers and those from trusted trading partners, helping to strengthen domestic supply chains and support Canadian businesses.
• Currently, eligibility is based on the location of suppliers. In spring 2026, it is expected that eligibility will be determined by the origin of goods and services.

If pressed on no substitution

• Due to operational requirements, Shared Services Canada will occasionally purchase equipment from a manufacturer to ensure compatibility with existing systems, in circumstances where there is no possible alternative.
• When this happens, Shared Services Canada provides a technical reason to support the decision. In some cases, the contract is still competed—but only among authorized resellers of the specific equipment.

If pressed on outsourcing

• Shared Services Canada uses professional services to help deliver programs and projects; to meet delivery targets; or to provide outside expertise on a particular project.
• Spending on professional services was reduced by $81 million, from $477 million in 2022–23 to $396 million in 2024–25. Oversight has been strengthened to ensure services are used only when operationally justified.
• As part of Budget 2025, Shared Services Canada has committed to reduce spending on professional services by a further 17% over three years ($68 million, for a total reduction of 31% since 2022‑23).
• As part of this effort, Shared Services Canada is continuing to improve its ability to manage work internally, build institutional knowledge and reduce contracted service costs.
• As outlined in Budget 2025, Shared Services Canada continues to build in-house capacity and expertise by investing in skills development, re-skilling employees, and optimizing how we allocate our resources.

If pressed on procurement ombud “bait and switch” report

• Shared Services Canada typically engages consultants using Public Service and Procurement Canada’s established methods of supply. To ensure quality and compliance, Shared Services Canada verifies that proposed individual resources meet or exceed both Public Service and Procurement Canada’s minimum qualifications and Shared Services Canada’s specific requirements.
• Shared Services Canada has strengthened its guidance to procurement officers by updating instructions to clarify the process and enhance the consistency and completeness of the documentation.

If pressed on supply arrangements

• Shared Services Canada has established supply arrangements that promote Indigenous business participation, including measures such as Indigenous Participation Plans to support subcontracting, employment and skills development.
• Contracts over $5 million undergo governance reviews to ensure meaningful consideration of Indigenous businesses in the procurement process.

Background

Government of Canada contracting is governed by well-established laws, regulations and government-wide policies.

Shared Services Canada complies with the Financial Administration Act, the Government Contracts Regulations, the Directive on the Management of Procurement, the Policy on the Planning and Management of Investments, the Code of Conduct for Procurement, trade agreements, court decisions, the Policy on Green Procurement, the Procurement Strategy for Indigenous Business and the Nunavut Directive.

Comprehensive Expenditure Review

Issue

The Comprehensive Expenditure Review (CER) is a government-wide exercise to reduce duplication and inefficiencies and realign activities toward the core federal mandate. It will reduce the public service population by 10% from its peak in 2023‑24 and achieve savings of $9 billion in 2026‑27, $10 billion in 2027‑28 and $13 billion in 2028‑29.

Key facts

• Under the CER, SSC will reduce its expenditures by:
  • $159.3 million in 2026‑27
  • $212.4 million in 2027‑28
  • $318.5 million in 2028‑29 (ongoing)
• These targets include planned savings from Budget 2024’s Refocusing Government Spending initiative.

Key messages

• Under the CER, SSC will meet up to 15% in savings targets over three years, achieving ongoing savings of $318.5 million.
• Specifically, SSC will:
  • standardize platforms and realign enterprise software offerings to match current needs
  • eliminate low-use or redundant licences
  • eliminate non-essential fixed telephone lines in all Government of Canada (GC) buildings, which will reduce expenses, and deploy cost-effective softphones to all workers
  • review, consolidate and renegotiate contracts to eliminate duplication, secure better pricing and align spending with enterprise needs
  • leverage emerging technologies to automate repetitive tasks, use AI-driven tools to optimize operations and service delivery, automate common IT support requests to reduce call volumes and costs while improving user experience
  • build its in-house capacity and expertise to reduce spending on external consultants and contractors for ongoing operations
  • simplify the cloud footprint by consolidating over 287 partners’ cloud environments into SSC’s enterprise cloud (GC Cloud One)
  • reduce and rationalize the remaining 190 legacy data centres across Canada into 4 enterprise data centres, 1 high-performance computing centre, 5 consolidation data centres, and approximately 50 edge computing sites
• Further, SSC is streamlining its organizational structure and processes, simplifying oversight and reducing layers.
  • 31% of employee reductions are management
• CER will result in a 5% reduction in the number of SSC employees.

If pressed on operational impacts

• There may be short-term pressure on service. However, SSC will mitigate this through prioritization, automation and reskilling, with the goal of maintaining or improving service levels over the long term.
• Operational IT capacity is largely preserved, with less than 3% of reductions coming from front-line IT staff.

If pressed on employees

SSC has invoked workforce adjustment and career transition for executives to meet its expenditure reduction targets and deliver on its ambitious digital agenda.

• On January 13, 2026, 1,339 employees, including 49 executives, were informed their positions may be impacted. SSC is aiming to reduce its workforce by approximately 477 positions to meet CER objectives.
• The goal is to reach this reduction by considering all available options, including the Early Retirement Initiative, a voluntary departure program, the selection of employees for retention or lay-off, and workforce adjustment. Minimizing the impact on employees is the top priority.
  • About 1,786 SSC employees received notice they are eligible for the Early Retirement Incentive program. This program’s approval is with Parliament.
• SSC is dedicated to supporting employees during this transition. Programs and resources are available to help employees navigate career transitions and maintain their well-being, including an internal portal (Gateway to Mobility Portal) to ensure priority consideration is given to impacted SSC employees when staffing positions.
• SSC actively engaged with stakeholders, including management and bargaining agents, to ensure transparency with respect to the workforce reduction plans.
• SSC understands the impacts of CER can be stressful and is committed to supporting its employees. SSC employees are encouraged to speak with their manager, the SSC Office of the Ombuds or the Employee Assistance Program for support.

Background

Budget 2025 noted that:

To meet up to 15% in savings targets over three years, Shared Services Canada (SSC) will implement efficiencies government-wide by standardizing platforms, including realigning enterprise software offerings, to match current needs; eliminating low-use or redundant licences; and removing non-essential fixed lines.

SSC will also retire outdated technologies, systems and infrastructure that are costly to operate, difficult to secure and that limit innovation. This includes migrating workloads and hardware from remaining legacy data centres into modern facilities to reduce outage risks in the support of critical services and to shrink the government’s costly legacy IT footprint. SSC will review, consolidate and renegotiate contracts to eliminate duplication, secure better pricing and align spending with enterprise needs. SSC will achieve significant savings by transitioning to modern, cost-effective solutions and ending or reducing support for legacy systems, which are often expensive to maintain and operate due to outdated technologies and higher risks of system failure.

To modernize workflows, reduce manual effort and optimize service delivery, SSC will leverage emerging technologies to automate repetitive tasks; use AI-driven tools to optimize operations and service delivery; and automate common IT support requests to reduce call volumes and costs while improving user experience.

SSC will also build up its in-house capacity and expertise to reduce spending on external consultants and contractors for ongoing operations. By developing internal skills, reskilling staff and optimizing resource allocation, SSC will lower contracted service costs while strengthening institutional knowledge.