Tech firm Unisys has lost one of the Federal Government’s longest running outsourcing arrangements.

The Australian National Audit Office (ANAO) has selected ASG as its new secure cloud provider.

The $11.2 million deal means ANAO will scrap IT infrastructure provided by Unisys in exchange for a “tailored set of ‘as a service’ offerings” from ASG.

Unisys became the provider of choice after a whole-of-government IT outsourcing initiative was introduced in 1997.

But no longer, with ASG saying it has achieved certification for a protected level security classification on the Australian Signals Directorate's cloud list, as requested by ANAO.

The ANAO says the deal will allow it to move over to an “activity-based working model”, which allows auditors to work security from any location.