AMP has extended its relationship with outsourcer KAZ Computer Services in a $32 million deal for seven years.
The renegotiation announced Wednesday comes in the face of speculation AMP would withdraw its stake in KAZ.
In December 2000, KAZ acquired Australian Administration Services (AAS) from AMP Life for $75 million, making AMP a 6.4 per cent shareholder in KAZ. As part of the acquisition of AAS, which claims to be Australia's largest administrator of superannuation funds, KAZ expanded its outsourcing contracts with AMP, winning a $70 million agreement over six years.
KAZ is renegotiating a previous six-year outsourcing agreement made with AMP in December 2000 worth $15 million, supporting a significant share of AMP's superannuation services.
That original agreement with AMP has been expanded to provide upgraded services in continuous operations and delivering some financial applications to AMP's financial planners.
KAZ will deliver those services 24x7 and provide LAN, WAN and desktops, all with technical support