Outsourcing change a loss for Unisys

ACC has short-listed two new companies to take over IT services

There’s about to be a changing of the guard at the Accident Compensation Corporation.

Out go the IT services incumbents of the last five years, Unisys, Datacom and Datacraft, following the short-listing of two new companies to take over as providers.

Graeme Osborne, general manager, information management, says the ACC evaluated RFP responses covering operations, helpdesk, network support and desktop services from seven vendors and drew up a short-list of two selected to go to due diligence, the next stage in the process.

“The two selected vendors best met the ACC requirements over the next five years,” says Osborne.

ACC won’t name the two but it is widely believed by the market that they are Gen-i and IBM.

“The ACC expects to complete a contract with a new supplier in July 2007, with a transition to the new vendor [taking place] over a nine-month period,” says Osborne.

“We can’t comment on the value of the new contract at this stage, as the final figure will depend on the outcome of the tender process.”

Industry sources say the overall value is expected to be between $15 million and $20 million a year, over five years.

Unisys appears to be the most affected by the changeover, but managing director Brett Hodgson says handling helpdesk, IT operations and desktop services has formed only a part of Unisys’ relationship with ACC since 2000.

“Under our current agreement, we will continue to provide these services until the end of the current calendar year, and we still retain ongoing contracts in areas such as datacentre and applications support,” he says.

“While the ACC decision is disappointing, we have three substantial new business wins and a further three contracts renewed. Because of this overall growth, we expect to be able to minimise the effect of the ACC decision on our staff and on overall performance. Our task now is to work with ACC to plan for, and resource, [a] transition.”

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