Controversial Vic govt IT business saved

Victoria's controversial CenITex IT business has been saved after the government reversed a decision to close it.

The move keeps 480 jobs at a government agency that ran sham contracting processes, paying contractors huge daily fees despite delivering poor IT services to departments.

"The former Liberal government's proposal to outsource all of CenITex's services in one package would have left the government worse off," Special Minister of State Gavin Jennings said on Tuesday.