May 18, 2004, 2:03 PM — Qantas Airways Ltd. signed a deal on Monday worth more than A$1 billion (US$685 million) to outsource IT and data center services to IBM Corp. and Telstra Corp. Ltd.
IBM is expected to receive A$650 million in the 10-year agreement to acquire and manage the delivery of data center operations, mainframe and mid-range computing.
Telstra will be responsible for domestic data, voice and desktop services in a contract worth more than A$750 million over 10 years.
Chief information officer Fiona Balfour said Qantas had simply outgrown its existing infrastructure and facilities.
"This partnership with IBM and Telstra will also enable us to build our own capabilities and modernize our network to the condition required for new-generation systems and technology as the Qantas group grows and changes," Balfour said.
"Everything we do depends on technology, from our online booking engine and ticketing to load and departure control, as well as the technological advances on board our aircraft and at airports.
"International airlines no longer build their own data centers, instead they turn to service providers that have the latest technology, scale and expertise to run these operations."
"We will continue to develop, manage and control all business systems with a 700-strong IT workforce providing systems delivery and overseeing these managed services."
More than half the 192 staff affected by the outsourcing deal have accepted positions with the service providers or been redeployed with Qantas.
The change of services will begin at the end of May and will be completed within two years.