Prepress
Telstra Signs Applications Services Contract with EDS, an HP Company
Tuesday 09. June 2009 - EDS, an HP company, has signed one of two expanded applications services contracts - with a combined value of $330 million (AU$450 million) - that Telstra, Australias largest telecommunications provider, announced today to improve performance and lower costs.
EDS five-year, $140 million (AU$190 million) deal is one of the largest application management engagements signed this year in Australia. Its agreement also includes potential additional discretionary opportunities of up to $245 million (AU$334 million). Under the agreement, which runs through to 2014, EDS will provide applications development and management services for Telstras critical business applications.
John McInerney, Telstra chief information officer and group managing director of Information Technology, is confident the companys new agreements will deliver significant benefits. “This is an important milestone for Telstra IT. One of the key outcomes of our IT transformation is the delivery of operational excellence,” said McInerney. “These expanded contracts contribute to our strategy and ensure an ongoing investment with our key partners. We are looking forward to continuing our relationship with EDS as we continue our IT transformation.”
By outsourcing some of its applications management to EDS, Telstra will gain access to global professionals, methods and innovative solutions. As a result, Telstra will benefit from flexible, scalable, predictable and reliable applications with performance levels that match its business objectives. Using its Best Shore strategy, EDS will provide services from the right place, at the right time. Standardized tools and processes allow for service delivery to be easily and effectively transferred between delivery centers worldwide.
“Telstra should receive significant cost savings from the EDS global delivery model,” said David Caspari, managing director of Australia and New Zealand at EDS, an HP company. “The agreement builds on EDS seven-year track record of service delivery excellence with Telstra and strengthens our position as one of their key strategic technology partners.”