Several of Kaz's major customers have welcomed Fujitsu's plan to buy the Telstra IT services subsidiary, saying they expect no adverse impact from the $200 million takeover.
Centrelink CIO John Wadeson (Credit: Centrelink)
"If there was a change in the ownership of Kaz, Defence and indeed the Commonwealth would expect no adverse impacts for Defence," a Department of Defence spokesperson said of Fujitsu's planned acquisition of Kaz.
Since Defence signed Kaz for its $200 million agency-wide desktop support deal in 2005, the outsourcer has become a key IT supplier to the department — for projects, services and ad-hoc work.
We believe the move does not represent any significant risks for the organisation.
Centrelink CIO: John Wadeson
Late last year Defence signed off on yet another IT services deal with Kaz worth $105 million and taking it to the end of 2010.
Kaz had also picked up millions in ad-hoc consultancy, licensing and hardware fees over the past two years from various agencies, including $1 million from the Defence Material Organisation to supply its military watercraft with a high capacity storage system.
Centrelink chief information officer, John Wadeson, said the agency would work with each company "as per usual", but was also waiting to see what the details were around the "merged" operations.
"Centrelink has a strong relationship with Fujitsu and consequently we believe the move does not represent any significant risks for the organisation," he said.
Other federal government Kaz customers include the Australian Taxation Office, Customs and the Attorney-General's Department (AGD). The legal services division of AGD had signed a $9 million deal with Kaz at the end of last year for system integration services that will take it through to 2012.
Kaz has been on the Australian Taxation Office's payroll since 1988, and continues to provide software support for its "image to information" system until October this year. That work has been worth around $7 million to Kaz. Kaz also holds a $2 million software support deal with Customs due to expire this June.
In the commercial arena, Kaz holds major contracts with a number of large companies, such as financial services giants ING and AMP.