Not to be outdone by EDS' $45 million outsourcing windfall at Caltex this month, IBM GSA has signed a massive contract with NRMA for virtually its entire IT infrastructure.
The deal will see GSA manage NRMA's S390 mainframe, 48 IBM RS/6000 and HP UX midrange systems and over 11,000 IBM and HP desktop environments. On the networking front, the deal includes 280 NT servers, a WAN covering 80 branches, six call centres, head office, numerous LANs and voice networks. The only aspect of its infrastructure that NRMA decided to maintain was application development and procurement.
Over the last 12 months, the insurance and motoring giant has been very active in expanding its IT infrastructure having invested over $125 million in technology during that time. However, GSA has not just been contracted to manage NRMA's existing infrastructure. The outsourcer has been contracted to integrate the IT operations of NRMA's recent acquisitions, which include SGIO/SGIC and a joint venture with RACV.
Approximately 85 NRMA IT staff will cross the floor to GSA and a number of other contractors following the deal. Officials also expect that there will be no staff reductions.
According to Ed Kilroy, IBM GSA's CEO, the outsourcing agreement will allow NRMA to focus on its core competencies.
"The NRMA has joined a growing number of organisations who have recognised the enormous benefits of outsourcing their end-to-end information services to allow management and staff to concentrate on increasing their core competitiveness," Kilroy said.