Leaseplan, one of Australia's largest fleet management companies, has awarded a multimillion-dollar outsourcing contract to KAZ Computer Services to house the company's IBM AS/400 mid-range computer systems and IT facilities for the next five years.
Leaseplan's deal with KAZ is a first-time outsourcing arrangement for the vehicle fleet manager, according to the company's manager of information systems, Martin Byrne.
Byrne would only indicate that the contract was valued at just under $10 million.
Specifically, KAZ will suppy Leaseplan with 24x7 operational and technical monitoring, maintenance and support of its IBM AS/400 servers from one of KAZ's six data centres in the Asia-Pacific region.
According to Byrne, Leaseplan's decision to outsource facilities management was a response to the company's record growth over the last three years, and a need to focus on core business and strategic issues instead of operations.
"In the past three years, Leaseplan has doubled in size, and the number of [car] units we manage is now 70,000, equalling $1 billion in annual revenue which has placed huge demand on IT here," Byrne said.
KAZ pushed IBM out of the tendering competition, winning the contract on expertise, better annual pricing and a more flexible agreement than KAZ, Byrne said.
Other outsourcing providers vying for the contract were CSC, Hitachi Data Services and Debus IT, he said.
Remaining IT staffers will now focus more on network administration and application support, Byrne added.
While the company is in the early stages of IT outsourcing, Byrne said he had already noticed improvements in operational efficiencies.
Leaseplan is a wholly owned subsidiary of Australian merchant bank ABN Amro.