Super group signs AU$140 million deal with IBM

Investment and superannuation organisation Russell Investment Group has signed a seven-year, AU$140 million business transformation outsourcing deal with IBM. In a statement issued today, the parties said Big Blue would assume operation of Russell's member administration service centre in Australia in a move which sees the centre's operations and a majority of its 199 staff shifted to a wholly-owned subsidiary of IBM Australia.

Investment and superannuation organisation Russell Investment Group has signed a seven-year, AU$140 million business transformation outsourcing deal with IBM.

In a statement issued today, the parties said Big Blue would assume operation of Russell's member administration service centre in Australia in a move which sees the centre's operations and a majority of its 199 staff shifted to a wholly-owned subsidiary of IBM Australia.

Jason Nyilas, a financial services partner at IBM Business Consulting Services, said Big Blue's aim was to secure 100 percent acceptance from Russell's employees and transition them all to the new operation.

Russell's member administration services centre administers around AU$19 billion of member assets, including the flagship AU$2.5 billion Russell SuperSolution Mastertrust fund.

Russell's managing director in Australasia, Alan Schoenheimer, said in a statement the move was driven by unprecedented changes in Australia's superannuation environment, such as the rise in superannuation outsourcing and member choice, which have driven demand for cost-effective, faster, more complex member administration services.

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