Kaz arms for western bunfight

Australian IT outsourcing provider Kaz Computer Services Ltd is set to take on the Computer Sciences Corporation (CSC) in the West Australian market following its acquisition of the Perth-based Fundi Software Group last week.

Peter Kazacos, Kaz managing director, said Fundi brings specialist skills in IT mainframe outsourcing which are necessary for the company to increase its market share in the West Australian marketplace and, eventually, the Asia-Pacific.

"We regard the West Australian market as a key part of our national Australian IT outsourcing strategy; there are a number of large, potential customers within the state which we intend to target immediately," he said.

This includes bidding for WA government tenders due for renewal next year and Kazacos expects to be bidding against the likes of CSC and EDS.

Unisys and BankWest formed a joint venture earlier this year (CW, August 28, p11) to compete in the WA outsourcing market and plan to also tender for government contracts.

Kazacos admitted CSC is very experienced, adding "it's the type of company we'd like to knock off.

"Because we are an Australian listed company we expect the government to look favourably upon us," he said. "Mainframe outsourcing contracts are typically more than five years duration and large in dollar terms, often exceeding $25 million-plus, and we now have the requisites to pursue this market with our established network of nine data centres."

Kaz acquired Fundi for $2.9 million cash and a further $2.9 million in Kaz shares with further payments to be based on performance levels over the next two years.

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