Telstra plans to slash outsourcing partners
Telstra has announced plans to cut its number of IT outsourcing partners to two to reduce costs.
A spokesperson confirmed it would consolidate all of its non-discretionary IT work and divide applications between two companies. Its major outsourcing suppliers include EDS, IBM Global Services, Infosys and Satyam. A number of major IT contracts across those four suppliers were up for renewal.
“This is a logical extension of our ongoing commitment and one that we’ve frequently articulated to reduce costs and streamline our providers,” the spokesperson said.
In December last year, Telstra extended a seven-year supply chain agreement with IBM Australia to deliver up to $200 million in additional cost savings through improvements on the company’s supply chain management..
