Lucrative Optus contract won't ease IBM job cuts

IBM's new Application Management Services division has signed it's first ever deal, a AU$500 million outsourcing agreement with Optus, but the lucrative deal was unable to promise new jobs to those affected by recent cuts.

The announcement of the deal, which is dependant on regular performance reviews, comes in the midst of the redeployment of 400 IBM GSA staff. A spokesperson for IBM GSA said it was too early to tell whether the deal would create any extra employment opportunities.

The deal is a significant increase over previous deals between the Optus and IBM, which have had an outsourcing arrangement since 1992. It includes application development, enhancement and maintenance of Optus' IT systems, Customer Care, Billing and Enterprise Resource Planning. Some elements are new, whereas others have superceded older agreements.

Optus have announced a major reduction in costs over the next two years, but declined to give precise figures or indicate whether the customer would see a price reduction.

"These are offerings which make us more efficient," Optus spokesperson Stephen Woodhill told ZDNet Australia. "These efficiencies are things which will benefit our business customers."

Advertisement

Talkback 0 comments

Latest Videos

Sponsored content

Power Centre - Content from our premier sponsors

Blogs

  • Suzanne Tindal Sick of broken tender sites
    Some of the state governments desperately need to invest in more user-friendly tender sites so that looking for information on government tenders doesn't have to be a game of blind man's bluff.
  • Array Cyberwar: What is it good for?
    In this week's episode, Cyberwar. What is Australia's place in the world of digital warfare? What are the implications for the NBN?
  • Array Is wholesale-only backhaul just a pipedream?
    The potential acquisition of Pipe Networks by SP Telemedia has raised the question about whether vertically integrated backhaul providers will mean higher wholesale prices for ISP customers.
  • More blogs »

Tags

Back to top

Featured