Siemens sets sale with $200M Amcor outsourcing deal

Siemens Business Services (SBS) has keel-hauled three of its outsourcing rivals to win a five-year $200 million contract with ASX-listed packaging company Amcor.

SBS, the outsourcing arm of German electronics and IT giant Siemens, out bid three so-far unnamed companies in a highly sought after tender to provide IT services to the Melbourne-headquartered Amcor.

Under the terms of the agreement released yesterday, SBS will manage and operate all of Amcor's Australasian IT resources including mainframe, distributed systems, helpdesk and application development and support.

According to a statement released by SBS, all existing Amcor IT employees have been guaranteed employment and will transfer to SBS.

Commencing in December, the tender and subsequent outsourcing initiative is expected to save Amcor 15 to 20 per cent of its annual IT expenditure.

Citing "synergies" in corporate cultures and visions, Peter White, country manager for SBS in Australia, claims SBS' manufacturing and global experience tipped the scales in SBS's favour.

The win provides SBS with its first major stakehold in the Australian outsourcing market which, according to IDC figures quoted by SBS, is the sixth largest outsourcing market in the world.

Operating in 24 countries, Amcor employs around 18,000 staff and manufactures corrugated boxes, cartons, aluminium and steel cans, flexible plastic packaging, PET plastic bottles and jars, closures and multi-wall paper sacks.