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T-Systems wins R1,8bn outsourcing deal

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T-Systems in South Africa has been awarded a R1.8 billion contract for the supply and maintenance of a significant portion of ICT infrastructure for financial services company, Old Mutual South Africa and short-term insurer, Mutual & Federal. 

The deal, which runs over five years, includes identification and exploitation of IT infrastructure as well as service delivery synergies across the two companies that form part of the Old Mutual Group.
The scope of the deal includes data centre management, disaster recovery, service desk and management toolsets, and the provision of hardware and software.
T-Systems CEO Mardia van der Walt-Korsten says; “We will be providing an in-depth Information and Communication Technology (ICT) solution for Old Mutual South Africa and Mutual & Federal. This is one of the largest partnerships in the local South African financial services sector and we are ready for the challenge."
The services, which will be rolled out from May 2008 will have a significant impact on the efficiency of the two companies.
Paul Hanratty, MD of Old Mutual South Africa, comments: “We recognise the importance of our IT infrastructure to enable Old Mutual to deliver our full range of financial services to the South African market.  This deal with T-Systems will enable improved delivery and efficiency, whilst exploring the benefits of emerging technologies."
According to Keith Kennedy, MD of Mutual & Federal, the company is embarking on a significant IT investment programme in support of the overall business strategy. “It is critical for our company to partner with a strong end-to-end ICT service provider that has the capacity to support our strategy and enable us to deliver world-class service. In T-Systems we have found a partner that will not only help us achieve our goals, but will also enable us to significantly reduce our IT costs.”
According to van der Walt-Korsten, key to success in any deal like this is collaboration on tactical and strategic levels with stakeholders.
“We employ a collaborative approach with our customers. This approach has helped to transform the traditional outsourcing relationships to become more co-operative and integrated. Both the customer and supplier now share responsibility for a host of decisions and this has ensured that our ICT services always operate at an optimal level,” she says.