Retail giant Myer today announced a five year IT outsourcing deal with IBM Australia.

Under the scope of the contract, IBM will supply a range of IT services to Myer including AS400 support, midrange services, data networking, desktop, applications maintenance and development as well as help desk services.

Announcing the deal, Myer CEO Bernie Brooks described the deal as a significant step for the Myer business under the new ownership of TPG Newbridge.

The company purchased Myer from Coles Myer Limited (CML) earlier this year. Previously, CML provided Myer with IT support and services, this continued under a transitional arrangement.

Brooks said CML provided assistance during the tender process and will continue to work with Myer over the next 12 months as IT moves over to IBM.

"Being in charge of our own IT strategy and future investment in systems remains paramount and we will continue to look at other best of breed technology solutions as we continue the Myer transformation to become a world class department store chain," he said.

IBM Global Technology Services general manager Peter Campbell said the company aimed to help Myer reach its full market potential.

In a statement, he said: "IBM is delighted to work with Myer on its transformational journey, and will draw on the breadth of its technology services and retail industry expertise to support Myer's overall business strategy."

Under the terms of the contract, Myer will continue to have direct commercial arrangements with all of its other IT suppliers.