The five-year contract comes as Woolworths breaks down its $300 million deal with Telstra encompassing telecommunications and Internet services.
It covers data services management, telephony, security and related infrastructure across Woolworths’ food and grocery, liquor, petrol, general merchandise and consumer electronics retail businesses.
Financial terms haven’t been disclosed. Work has already commenced and tenders for individual service modules have closed.
“Dimension Data has established a very strong reputation in outsourcing and managed services in the Australian market over the past five years,” Dimension Data CEO, Steve Nola, said in a statement.
“While Dimension Data clearly has the ability to execute when it comes to managing telecommunications and IT infrastructure, what sets us apart in the industry is our focus on delivering successful business outcomes, rather than just a technology or operational solution,” Nola said.
Woolworths CIO, Dan Beecham, said the company wanted to take a flexible approach to telecommunications procurement, establishing a framework to encompass a range of services modules.
“The 12-month review identified opportunities to gain productivity benefits through flexibility and increased efficiency across the business,” he said. “The enterprise telecommunications market is changing rapidly and it is important to look at specialist players in the market with specific expertise and points of difference.”
The review would also help the food giant leverage its internal capabilities and combine them with the expertise of individual service providers, Beecham said.
“It will also provide us with greater scalability of services and deliver cost savings for our business,” he said. Recently, the integrator renewed a $36m contract with the South Australian government relating to managed network services.