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Optus aims for huge cost cuts with IBM

Optus has extended its application management contract with IBM in the hopes that it will help the telecommunications company reduce costs by 40 percent over the next three years.IBM, which has been working closely with Optus for around 12 years, will continue to manage many of the telco's critical applications such as customer care, enterprise resource planning (ERP) and billing from its Regional Software Solutions Centre in Ballarat.

Written by ZDNET Editors, Contributor March 7, 2005 at 5:25 p.m. PT

Optus has extended its application management contract with IBM in the hopes that it will help the telecommunications company reduce costs by 40 percent over the next three years.

IBM, which has been working closely with Optus for around 12 years, will continue to manage many of the telco's critical applications such as customer care, enterprise resource planning (ERP) and billing from its Regional Software Solutions Centre in Ballarat.

Paul O'Sullivan, chief executive of Optus, expects the deal to help Optus significantly reduce its costs and increase efficiency.

"Optus expects that [the relationship with IBM] will deliver further cost savings of around 40 per cent over the next three years, through Optus co-sourcing its application portfolio to IBM," said O'Sullivan.

O'Sullivan said the deal with IBM will also help improve the skills base in Optus and Australia generally.

"As part of the deal, Optus will draw on expertise from one of the most highly accredited software development organisations in the world. IBM will also facilitate a knowledge transfer process whereby IBM developers will transfer their skills and knowledge to Optus' IT staff," said O'Sullivan.

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Optus aims for huge cost cuts with IBM

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