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KAZ wins $10m Orica contract

KAZ wins $10m Orica contract

ASX-listed KAZ Group has won a five-year managed services contract with Orica worth an estimated $10 million.

In addition to providing managed services, KAZ will conduct a technology refresh. This will include the introduction of two IBM p690 Unix machines as the customer moves into an on-demand environment.

“The new infrastructure will have some dark capacity, which means we’re not paying for it but can get it turned on as we need. This gives us quick scalability,” manager of IT shared services for Orica, Leigh Rowe, said.

“We are also using logical partitioning, which means we can use one p690 for several systems and reallocate resources as we need. Employing a split production environment also saves us going to an expensive subscription-based disaster recovery model.”

KAZ won the deal after beating off competition from the usual suspects. Rowe said a dozen companies had tendered for the contract but a shortlist of three had seen KAZ win out over HP and previous incumbent, Atos Origin.

“KAZ has a very good technology offering and very strong links with IBM,” explained Rowe. “They were quite flexible in their approach to negotiating the contract, have been quick in making decisions and came up with a very good value proposition.”

Managing director of KAZ Technology Services, Andrew Richardson, said the transition would be completed and all business units would go live by the end of June.

The turn of the year has been something of a purple patch for KAZ. It announced the signing of a $4 million outsourcing contract with the NSW Department of Mineral Resources last week and put pen to paper on a $20 million deal with the Department of Defence in December.

“We have a value proposition that works and we have a track record of delivering,” said Richardson. “The market is moving towards our strengths. The mega-deals – where the IT department is thrown over the fence – have proved to be ineffective. Companies are now going for selective sourcing and being clear about what they want to get out of it.

“We have an installed base of loyal customers that are happy to tell others how good we are and we don’t have the overheads of the multinationals, which means we are able to be flexible and deliver at a price point where we can make good money but our competitors will struggle.”

Richardson claimed KAZ was close to signing another big deal in WA but was unwilling to provide details at this stage.


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