Telstra inks $1.2-billion deal with IBM, Infosys, EDS

Australian telco Telstra today said it has renewed and awarded outsourcing contracts worth about $1.2 billion to IBM, Infosys and EDS as part of its vendor consolidation exercise to increase efficiency.

According to Telstra’s major vendor agreements, EDS and Infosys would share $450 million application development and maintenance contract over five years.

Besides, Telstra also announced that IBM has been awarded a renewed IT Operations Services agreement worth $750 million for five years for managing the telcos’ IT infrastructure.

“The consolidated approach, via standardised contracts, enables greater efficiency .... By working with fewer vendors, Telstra will streamline IT processes and deliver more effective and efficient service,” the company said in a statement.

These consolidated contracts contribute to our strategy and ensure an ongoing investment with our key partners, it added.

“EDS, IBM and Infosys are important IT transformation partners and we look forward to continuing our relationship... These consolidated contracts contribute to our strategy and ensure an ongoing investment with our key partners...,” Telstra CIO and GMD Information Technology John McInerney said.

However, Telstra did not comment if Satyam continues to be a vendor.

Earlier, there were reports that the Australian telecom giant had dropped an outsourcing contract with Satyam Computer.

Telstra further said: “The IT transformation programme has included an extensive analysis of both IT contracts and systems. This analysis highlighted an opportunity to review multiple vendor contracts and consolidate the work in two key areas within IT — application development and maintenance and infrastructure build, management and support.”