EDS, Deloitte talk Telstra outsourcing

EDS, Deloitte talk Telstra outsourcing

The Deloitte Consulting Consortium is in wheeling and dealing mode after Telstra gave it the nod for two of the 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 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, 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.

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