ASI signs lucrative IBM GSA deal

ASI signs lucrative IBM GSA deal

Local reseller and PC manufacturer ASI Solutions yesterday signed an outsourcing deal with IBM Global Services Australia (GSA) to build computers for Federal Government health agencies.

The contract, which runs five years with two two-year renewal options, fulfils Federal Government requirements that stipulate multinational companies must partner with local SMEs in order to win government tenders.

Ken Lowe, director of ASI, said he expected the deal would net ASI at least $50 million over the first five years. "We've been working with IBM GSA for the six months leading up to this announcement, and we've found them to be extremely professional and responsive."

The admiration was mutual.

John Bligh, vice president of operations at IBM GSA, said: "Part of what attracted us to ASI is that it's an innovative and leading edge company in one of the most rapidly changing industries of all."

The deal has prompted ASI to build a manufacturing facility in Darwin, which will produce 5000-10,000 units per year over the next three years.

Meanwhile, ASI has also released a new sub-$1000 machine -- a basic PC with word processing and internet access that retails for less than $1000 -- which the company hopes will expand its reach into new markets, such as RSL clubs.

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