Optus and IBM Global Services Australia today announced an outsourcing contract for Application Management Services potentially valued at up to $500 million over 10years.

The deal, which is subject to performance measurements, will see IBM provide a cross section of services to Optus including application development, enhancement and maintenance of Optus' IT systems, including Customer Care, Billing and Enterprise Resource Planning.

Paul O'Sullivan, Optus Chief Operating Officer, said the deal provides Optus with considerable flexibility in managing its applications.

"The agreement gives Optus savings in ongoing support costs - allowing us to draw on IBM Global Services' skill set in Australia and Worldwide.

"Optus will benefit from a major reduction in costs for the first two years of the contract, followed by productivity targets that will be agreed between the two organisations before the start of year three of the contract," Mr O'Sullivan said.

IBM Global Services Australia has provided development, enhancement and maintenance of business applications to Optus since 1992.

"This agreement builds on an existing long-term relationship and reflects Optus' recognition of the tangible benefits to be gained from externally managed applications," said Brendon Riley, General Manager, IBM Global Services Australia and New Zealand.

"By drawing on IBM Global Services' broad application management services skill set, Optus is able to reap the benefits of flexible terms and value pricing to maintain competitiveness in a changing business environment," Mr Riley said.

Under the contract, Optus and IBM Global Services will introduce revised procedures that will make it easier for Optus' business units to use application management services, including the ability to order commonly used services from a catalogue of pre-priced items.

For more information:
Simone Bergholcs
Optus Corporate Affairs
Phone: 02 9342 7846

Letitia Walker
IBM Global Services Public Relations
Phone: 02 9397 8820