The investment in AAPT may not have paid off so handsomely for Telecom, but it has for EDS: the services company’s work with the telco in New Zealand has helped it land a $US70 million 10-year outsourcing contract with the Australian subsidiary.
From March 1 EDS will begin managing, operating and enhancing information systems and technology delivery throughout AAPT, “including its enterprise applications, technical infrastructure and IS assets”, says a media release. EDS will draw on both its Australian and New Zealand operations to provide these services.
“Over the last three years we’ve seen first-hand the benefits that Telecom NZ has realised from its strategic relationship with EDS,” says AAPT’s group director of service delivery, Ian Buchanan. This encouraged AAPT to go to the same source.
EDS’s strategic relationship with Telecom was formed in July 1999 with a 10-year, $US800 million contract. EDS NZ supplies most of Telecom’s centralised and decentralised computing platforms; most of its major billing and network provisioning systems; and a range of application development and maintenance services.
In August 2002 the companies announced a $US133 million, three-year extension to the existing agreement, to take it through to 2012. In a separate agreement, Telecom extended its relationship with EDS in December 2001 to supply and manage its 7400 desktop PCs and laptops. And in September 2002, Telecom and EDS signed a strategic partnering agreement for the integration and operation of Telecom’s “next generation network” with its business systems.
Initially, about 42 AAPT employees are expected to make the transition to EDS Australia as part of the outsourcing agreement.
AAPT’s market value and customer numbers have fallen in recent years and it has undergone staff cuts and restructuring.