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Infosys wins extended order from Telstra

This article was posted on Jun 9, 2009 and is filed under Stock News

The estimated base spend of the combined AD&M agreements is $450m over five years. IBM remains a strategic partner in this domain.

Telstra announced a range of major vendor agreements as part of its IT transformation plans to increase efficiency and streamline IT operations.

The IT transformation program has included an extensive analysis of both IT contracts and systems. This analysis highlighted an opportunity to review multiple vendor contracts and consolidate the work in two key areas within IT: 1) application development and maintenance (AD&M) and, 2) infrastructure build, management and support.

Following a comprehensive tender process, Telstra announced today that it has awarded expanded application development and maintenance services contracts to EDS and Infosys. The estimated base spend of the combined AD&M agreements is $450m over five years. IBM remains a strategic partner in this domain.

The consolidated approach, via standardised contracts, enables greater efficiency in management effort and improves consistency of delivery and support. By working with fewer vendors, Telstra will streamline IT processes and deliver more effective and efficient service.

Telstra also announced today that IBM has been awarded a renewed IT Operations Services Agreement (ITOPSA) managing Telstra’s infrastructure. The contract is worth an estimated $745m over 5 years.

The ITOPSA contract will result in greater automation and improved remote management capability of Telstra’s IT systems, while reducing IT infrastructure build time. This will enable Telstra to more efficiently execute complex projects across its IT infrastructure.

John McInerney, Telstra CIO and GMD Information Technology is confident the new agreements will deliver significant benefits. Mr McInerney said “This is an important milestone for Telstra IT. One of the key outcomes of our IT transformation is the delivery of operational excellence. These consolidated contracts contribute to our strategy and ensure an ongoing investment with our key partners.”

EDS, IBM and Infosys all have experience working with Telstra. “EDS, IBM and Infosys are important IT transformation partners and we look forward to continuing our relationship,” Mr McInerney said.

David Caspari, managing director of Australia and New Zealand at EDS, an HP company, said the deal aligns well with Telstra’s business goals.

“Expectations for today’s applications have multiplied – to deliver faster time to market, achieve better customer satisfaction, expand to new market segments, and improve business process and operational efficiencies. With deep expertise in applications services and strong knowledge of the telecommunications industry, EDS will enable Telstra IT to support the business’ needs.”

Infosys Australia CEO Jackie Korhonen welcomed the announcement as a reinforcement of Infosys’ strategic partnership with Telstra since 2003.

“This is a strong acknowledgment of Infosys’ ability to contribute strategic value to one of our top clients worldwide,” Ms Korhonen said. “We are excited to be part of Telstra’s IT transformation.”

The agreement with IBM covers data centre mainframe operations, a proportion of midrange operations and maintenance.

“This is a significant agreement for IBM as it builds on our strong relationship of more than 20 years. Both teams (IBM and Telstra) have collaborated closely in the design of this new agreement. This is a great opportunity for us to build on the work we have been doing in Telstra’s infrastructure domain – combining the IBM software tools suite and IBM’s depth of technical knowledge to provide Telstra with a highly efficient IT environment,” said David Burns, IBM Managing Director -Telstra Account.

source: Indiainfoline

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