Large fund manager Perpetual has signed a $68 million outsourcing agreement with Fujitsu under a five-year plan to modernise its IT infrastructure and applications. The agreement is part of Perpetual’s “Transformation 2015” program aimed at delivering $50 million in annual savings in FY15.
Around 100 IT staff are set to lose their jobs as a result of the new agreement, which will begin in the second half of FY13. Perpetual said it would retain a small IT team focused on governance and vendor management. The final transition and handover will be complete in the fourth quarter of FY13.
Under the agreement, Perpetual will upgrade its network, desktop and applications infrastructure to gain several server and capability improvements. Perpetual said the new IT structure will create a more variable cost base by moving from allocated to direct costs to deliver savings.
Jens Butler, principal analyst for IT services at Ovum, said the deal with Fujitsu highlights the growing trend for longer-term, inclusive deals with a single supplier.
“Enterprises increasingly demand control and stability, especially where risk mitigation and regulatory compliance are of critical importance,” he said in a statement.
Perpetual today blamed restructuring costs and weak share market conditions for a 57 per cent profit fall for the year ending June 30. It reported a net profit of $26.7 million for the period, down from $62 million the previous year.