Shorter-term contracts and clearer accountability around government IT projects will help avoid billion-dollar cost blowouts of the past, the Victorian government says.

Technology Minister Gordon Rich Phillips said information and communication technology (ICT) projects would be managed differently to improve how the state's computer system projects were managed and avoid costly overruns.

It comes after an ombudsman's report found Victorian taxpayers were slugged an extra $1.44 billion due to mismanagement of 10 major ICT projects, including the myki ticketing system and the replacement of the police LEAP database, under the previous Labor government.

Mr Rich Phillips said there would be clearer accountability on how projects were run under the new strategy.

Large ICT projects will be broken down into smaller stages to ensure they are completed on time and reduce the risk of project failures and cost overruns.

"The ombudsman and auditor-general report spoke about a $1.4 billion blowout," Mr Rich Phillips told AAP while unveiling the new strategy on Tuesday,.

"We're in a position where, frankly, the state can't afford to be doing those sort of project cost overruns.

"These changes will help prevent the major cost blowouts and bungles in ICT that became such a trademark when (opposition leader) Daniel Andrews was in government."

Mr Rich Phillips said identifying individual projects would be a separate decision of government.

In his 2011 report, ombudsman George Brouwer said Victoria had missed out on numerous new public services because of significant blowouts in ICT projects run under the previous Labor government.

He said none of the 10 major ICT projects he examined was well planned and each failed to meet expectations and delivery timelines.

Mr Brouwer said there had been an abject waste of money and it was critical for the government to rein in costs.

The state opposition has been contacted for comment.