Logica scores outsourcing contracts with utility players

Melbourne-based systems integrator Logica has secured two multimillion-dollar IT outsourcing contracts from Victorian utility retailers Texas Utilities (TXU) and Yarra Valley Water.

Under a five-year agreement with gas generator and retailer TXU, Logica will support TXU's core gas and electricity business processes by providing the distributor with end-to-end IT services.

Specifically, the outsourcer will supply facilities management, server and data communications support and manage third-party service providers like telecom carriers, Logica said in a statement. Logica will also relocate the client's server infrastructure to Logica's Melbourne data centre.

According to TXU's manager for IT infrastructure, Ian McKenzie, the deal is worth just under $5 million. The new agreement also builds on TXU's three-year relationship with Logica for facilities and network server management, he said.

TXU is an $80 billion company with around 930,000 natural gas and electricity customers in Victoria's west and east, and also has subsidiaries in the US and Europe providing telecommunications and other energy services.

Logica's second win is with Yarra Valley Water, a Victorian Government-owned company said to be Melbourne's largest water retailer. Yarra Valley Water provides water supply and sewerage services to some 1.5 million northern and eastern suburb residents in Melbourne.

From October 1, Logica will operate and support the water retailer's mission-critical IT systems over a three-year term.

Yarra Valley Water partnered with Logica because the outsourcer "blended well" in terms of service level, price and overall package, company spokeswoman Melanie Kent said.

"There's a seamless integration between Logica and us that works. Logica's service is immediate and they provide good follow-through."

While Yarra Valley has a team of 20 information technology professionals, Kent said IT was still "not the company's core business", despite its large IT group. Five contractors from Logica will be transferred to Yarra Valley Water to manage the company's IT infrastructure, she said.

Representatives from TXU and Yarra Valley Water would only divulge that their contracts with Logica were "multimillion-dollar" agreements. Neither they nor Logica would disclose the names of outsourcers who competed for the two tenders, citing "commercial in confidence".