Computer Sciences Corporation (CSC) have signed a total outsourcing agreement with insurance giant AMP worth a reported $550 million to the US-based IT consultancy.
The new deal is an expansion of a pre-existing outsourcing agreement. Company sources report that the new agreement will see CSC take on the management of AMP and GIO's Australian IT infrastructure which includes all network, desktop, mainframe and selected mid-range services.
AMP decided to extend CSC outsourcing contract due to the sucessful relationship between the two companies over several years.
In a statement released internationally, AMP chief executive Paul Batchelor described the outsourcing agreement as pivotal to their Australian business and one of the key elements of the program which will see GIO integrated into AMP.
AMP sources claim that the company stands to save $200 million over a five-year period by outsourcing to CSC.
Meanwhile, new research from Gartner's Dataquest claims that CSC has reached the number two position in the Australian IT services market.
A press statement from CSC said the upgraded market estimates come in the wake of CSC's recent acquisition of BHP IT - a move which allowed it to leapfrog EDS into the the number two spot.