AMP has renegotiated its existing IT infrastructure outsourcing agreement with CSC in a new five-year, $550 million contract, which will generate millions of dollars in cost savings.
AMP has had an ongoing relationship with CSC since 1997.
The new contract, effective from June 1, includes providing infrastructure and management services to AMP's recently acquired GIO business division.
According to AMP, the revised deal will generate total savings in excess of $200 million for AMP over the five years of the contract. More than $30 million in savings are expected in the first year, officials said.
AMP acquired GIO late last year in a $2.64 billion takeover. The CSC agreement is a key element in the AMP-GIO integration program currently underway.
"AMP has been building a relationship with CSC for the last five years. Obviously, since the GIO takeover, there have been opportunities (for the relationship) to be enhanced," Justin Kirkwood, AMP corporate spokesperson, said.
"The new contract reflects the new (AMP business)," a spokesperson from CSC said.
According to Kirkwood, under the deal CSC will provide AMP with all its IT infrastructure including network, desktop and mainframe services, and selected mid-range services, Kirkwood said.
Additionally, CSC will provide other services such as help desk management, security, disaster recovery and architecture management.
Existing GIO IT infrastructure will be replaced by CSC infrastructure over the course of time, Kirkwood said. GIO's incumbent supplier is not known, he said.