IBM's Supply Chain Managed Business Process Services will provide management and reporting for procurement services including energy, utilities and industrial supplies. Telstra also will have real-time access to capacity, inventory, production, delivery and forecasting under the agreement.
The financial terms of the deal have not been disclosed, but an IBM company representative said that Telstra will save an estimated AU$500 million over the seven years.
IBM has been building its business as a provider of outsourcing services by signing deals with CVS/Pharmacy, Delta, ACOM in Japan, and St. George Bank, also in Australia. The Telstra deal is notable, however, because of its size.
