Optus, IBM seal apps management deal

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

The deal, which is subject to performance measurements, will see IBM provide a cross-section of services to Optus, Australia's second largest telecommunications provider.

Optus said the services include application development, enhancement and maintenance of Optus' information technology systems, such as customer care, billing and enterprise resource planning.

Optus' chief operating officer Paul O'Sullivan said the deal provided 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," he said in a statement.

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