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Optus awards IBM application management contract

  • 08 March, 2005 10:06

<p>Sydney, Australia, 8 March 2005 - IBM announced today it has signed a three year contract extension to manage, support and develop Optus’ key business applications. Under the terms of the agreement Optus will co-source the IT management of key business applications such as billing, customer care and enterprise resource planning to IBM’s Regional Software Solutions Centre (RSSC) in Ballarat.</p>
<p>According to Paul O’Sullivan, Optus Chief Executive, the agreement will help Optus achieve greater output from its applications portfolio, reduce costs and transform business processes.</p>
<p>“Optus and IBM have a mature working relationship. Since 1992, IBM has successfully helped Optus to reduce its costs. Optus expects that it will deliver further cost savings of around 40 per cent over the next three years, through Optus co-sourcing its application portfolio to IBM’s RSSC in Ballarat.</p>
<p>“As part of the deal, Optus will draw on expertise from one of the most highly accredited software development organisations in the world. IBM will also facilitate a knowledge transfer process whereby IBM developers will transfer their skills and knowledge to Optus’ IT staff,” said Mr. O’Sullivan.</p>
<p>Importantly, these arrangements will help to develop Australia’s IT skill base, and contribute to the development of Ballarat as a centre of excellence in IT skills development.</p>
<p>“Optus is pleased that we have been able to secure cost competitive IT services arrangement but at the same time work with IBM to maintain key skills in Australia,” said Mr O’Sullivan.</p>
<p>In March 2005, IBM will become the first Australian organisation to be conferred the highest accolade in the software development industry - the IEEE Award for Excellence in Software Process Improvement. In November 2003 IBM became the first Australian organisation to achieve CMMI level 5 certification.</p>
<p>David Norris, General Manager – IBM Application Management Services, said that over the past seven years IBM Australia had made significant investments to develop a world-class application development practice.</p>
<p>“By investing in our local capabilities, IBM is able to attract work to Australia.</p>
<p>“The extension of IBM Australia’s partnership with Optus is a strong endorsement of the fact that we are delivering business value and demonstrable cost savings. Over the next three years we will help Optus’ to achieve even greater output and increased value from its existing IT infrastructure.</p>
<p>“A key component of the agreement is that IBM will provide Optus with a flexible delivery model whereby Optus can scale-up resources, on demand,” said Mr. Norris.</p>
<p>In this co-sourcing partnership, skilled IBM professionals will be integrated with Optus teams to ensure on-time project delivery, accelerate the delivery of business results and assist Optus in building strong internal project delivery. Throughout the term of the three year contract, IBM will provide strategic planning services to reduce the overall cost of Optus’ IT applications.</p>
<p>-- ENDS --</p>
<p>- In May 2004 IBM Australia was awarded the prestigious Institute of Electrical and Electronics Engineers (IEEE) International Software Process Achievement Award. The IEEE award recognises organisations which have demonstrated significant, sustained and measurable achievement in software process improvement. IBM Australia is only the 7th recipient of the award in the past 11 years.</p>
<p>- In November 2003 IBM became the first Australian organisation to reach CMM level 5. During the past five years IBM estimates that CMM has contributed to savings of more than AUS$230 million for IBM's customers.</p>
<p>About IBM Global Services</p>
<p>IBM Global Services is the world's largest information technology services and consulting provider. Some 180,000 professionals in more than 160 countries help clients integrate information technology with business value -- from the business transformation and industry expertise of IBM Business Consulting Services to hosting, infrastructure, technology design and training services. Leveraging IBM's unequalled scope and scale, IBM Global Services delivers integrated, flexible and resilient processes -- across companies and through business partners -- that enable clients to save money and transform their businesses to be more competitive. For more information, visit</p>
<p>About Optus</p>
<p>Optus is Australia’s leading integrated communications company - serving around six million customers each day. The company provides a broad range of communications services including mobile, national and long distance services, local telephony, business network services, internet and satellite services and subscription television.</p>
<p>Since commencing operations in 1992, Optus has invested more than $10 billion in the construction of fixed, mobile and satellite networks, including central business district and suburban local access networks. These networks provide the company with an advanced technology platform capable of delivering integrated communications, information and entertainment services.</p>
<p>Optus became a 100 per cent owned subsidiary of Singapore Telecommunications (SingTel) on August 30, 2001 and listed on the Australian Stock Exchange on 10 September 2001. SingTel is one of the leading stocks on the ASX and is the number one stock on the Singapore Stock Exchange.</p>
<p>Media Contacts:</p>
<p>Reuben Young, IBM Communications, 0401 712 676.</p>
<p>Melissa Favero, Optus Corporate Affairs, 02 9342 7850.</p>

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