National Foods extends HP outsourcing deal for $12m

in brief One of Australia's largest food companies had extended an IT oursourcing contract with HP in a $12.3 million agreement.

The deal, worth around $4 million a year, means HP will continue to run National Foods' IT infrastructure till 2010. As part of the agreement, HP claims it will install an SAP system and provide the food manufacturer with Superdome servers.

"By outsourcing those aspects of the business to HP, the organisation can afford to invest a greater focus on its core business processes and look to standardise and improve its shared IT services to achieve greater business efficiencies," Simon Gatward, director of outsourcing for HP South Pacific, said in a statement.

National Foods has 24 processing plants and employs around 3,500 people.