EDS and Deloitte discuss outsourcing with Telstra

EDS and Deloitte discuss outsourcing with Telstra

The Deloitte Consulting Consortium is in wheeling and dealing mode after Telstra gave it the nod for two of its carrier's three main streams of outsourcing.

The consortium, lead by Deloitte Consulting and EDS Australia, will negotiate a final contract with Australia's incumbent telco for its billing software maintenance and development, and the management of an ERP system for finance, personnel and administrative IT systems.

Telstra went hunting for an outsourcing partner in April of this year after it split its outsourcing requirements into three streams in a quest for better systems performance at a lower cost to the carrier.

The EDS and Deloitte Consortium, which includes strategic vendor partners HP, SAP and AST, took out the tender, beating rival bids from IBM GSA and Australian entry DMR Group. The Consortium and is now in the throws of negotiating due diligence for the final contract. Telstra expects the final agreement to be signed in December with affected Telstra staff offered positions in companies within the Consortium.

The billing and ERP components that make up two streams of Telstra's outsourcing requirements comprise around 25 and 15 per cent of the total contract respectively, with EDS and Deloitte taking the lion's share of the 40 per cent on offer.

Dwight King, managing director of Business Processes and Information at Telstra, claims the tender came down to three criteria: cost, implementation/ time to market and overall quality.

The announcement may come as little surprise to some industry pundits after Deloitte secured an earlier tender with the carrier to implement its ERP system from software vendor SAP. While King was adamant the tender was won on its merits as a separate contract, he does concede Deloitte had the edge if the contract came down to the wire.

"The fact Deloitte had implemented the SAP [platform] would have been a factor if it was close," admits King.

Meanwhile, Telstra has already signed Consortium rival IBM GSA for the remaining lucrative third stream of outsourcing which includes a CRM application, service activation and assurance, wholesale and international operations, fixed and mobile network systems and marketing IT support systems.

Steve Avery, Deloitte's director of client services for Telstra, was reserved in addressing any specifics of the impending contract, but was willing to confirm that continuing negotiations are "extremely important to Deloitte".

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