Kaz Computer Services has secured a $15 million software development and marketing agreement to build a global superannuation management software product.
The IT services company is contracted to a consortium of three independent Australian superannuation funds and Shearpond. The company did not release details of the funds.
Peter Kazacos, Kaz's managing director, said it had been involved in superannuation for more than 12 years, and was building this particular product for worldwide markets.
"We're going to the US to cover the US pension plans as well as ensuring we cover the needs of Australia and other regions," he said.
He said it has developed and currently supports the superannuation software management systems for more than five million Australians for one of its clients.
"Our company has unique expertise in the area and is now using this expertise to leverage into the global superannuation management market," Kazacos said.
Kaz is carrying out the development of the product, which is expected to take 18 months. Under the agreement, Kaz retains 22.5 per cent ownership in the product. This includes the company having exclusive marketing rights both in Australia and overseas.
He said Kaz had decided to sell the product itself because it could see big demand for it. "[We] believe strongly there is a good market here," Kazacos said.
A separate financial products division has been set up within Kaz to look after sales, marketing and product management of the superannuation software.
According to Kazacos, it expected there to be a market for the new system worldwide. "Our research shows there is a high level of demand for a new standard of software because most of the existing industry-specific software is dated and unable to fully support expanding requirements of growing businesses."
Kazacos said the announcement also showed the strength of the company's application development. He said it was a "nice export revenue for Australia", and it would be good to produce a financial product for international markets, rather than reselling an American-based product.