Telstra in Deloitte consortium outsourcing deal

Telstra is poised to finalise two of three core streams of IT work with private services firms, negotiations for which started with the Deloitte Consulting Consortium late last year.

As reported in Computerworld in November 2000, the Consortium (a Deloitte Consulting and EDS services alliance) won a five-year contract to manage two major sets of IT outsourcing work for the national carrier.

The contract is valued between $100 million and $800 million, a Telstra spokesman said. Deloitte will manage Telstra's enterprise resource planning (ERP) systems, and EDS its electronic billing and service delivery work.

The deal will help Telstra reduce billing administration and accounting systems maintenance costs by around $120 million, ultimately improving quality of service delivery and creating speedier time to market solutions, the spokesman said.

All 600 staff in its billing software and ERP software groups combined have been offered positions with the services companies. Most of the staff, responsible for electronic billing administration, are expected to join EDS once the contract is signed within a fortnight, according to Telstra.

IBM GSA will perform Telstra's third major stream of IT work covering CRM software application development, wholesale and international operations, fixed mobile network systems and marketing IT support systems, said Dwight King, Telstra's MD of business processes and information.

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