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Contents 
Calling the experts
Sodexho
Realising benefits
IBM's outsourcing deals
The future of IT outsourcing |
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Only in September did IBM global Services sign a five-year contract to supply Total Service Management (TSM) to retailer Woolworths. And back in May, the same group signed a AU$446 million IT outsourcing deal with Qantas for management of the airline's data centre and other IT systems, allowing the airline to focus on ongoing changes in the airline industry and on its own business growth.
Qantas says the main driver behind its outsourcing deal was its dated datacentre. In an earlier T&B interview, Qantas CIO Fiona Balfour said while the airline has successfully carried out a lot of its IT services, its datacentre was reaching an age where it could not be "renovated".
"It was designed in 1969, built in 1970 and implemented in 1971 and has had a 30-year design life. We had to go and do something that delivers better economics for our company, and that's what we've done," Balfour says.
IBM says its deal with Woolworths will help the retailer respond with flexibility to changing market conditions. "[It] will provide Woolworths' 1400 stores with on-demand IT infrastructure management and support," IBM Integrated Technology Services general manager Terry Moloney says. "By outsourcing non-core activity such as maintenance or its IT infrastructure to IBM, Woolworths can focus on its core business."
Under the five-year agreement, IBM will provide a single point of service management of existing IT infrastructure across Woolworths Supermarkets including Safeway, Food For Less, BWS Liquor, First Estate Liquor, Plus Petrol, and Dan Murphy.
