Friday | 9 January, 2009
CIO
WA utility inks $15.4 million IT services contract with CSC
Part of dramatic increase in local mainframe outsourcing
Sandra Rossi (Computerworld) 22 April, 2008 10:47:55

According to a whitepaper released by CSC earlier this year, by outsourcing the mainframe a company can typically save 20 per cent on their current in-house mainframe costs.

Companies that have their mainframes inhouse are usually paying more per MIP, according to the whitepaper.

This is because outsourcing providers like CSC can leverage global scale and attain savings with IBM and ISV vendors for hardware and software.

CSC estimates that on software alone, it can generate savings of about 40 per cent.

Research showing outsourcing deals inked in the Asia Pacific increased 43 per cent between 2006 and 2007 topping more than US$25 million, according to advisory firm TPI Inc.

The region accounted for 13 per cent of the global market, the first time market share has exceeded 10 per cent since 2002.

The compound annual growth rate for service providers in the region is 10.5 per cent, which is more than double the global rate of 4.5 per cent.

Part of this growth has been the extension of two existing contracts with CSC by the Department of Immigration and the Australian Electoral Commission.

Willmott said the Department of Immigration wanted its data replicated to a disaster recovery site which led to the establishment of a CSC data centre in Sydney.

He said the immigration department extended its mainframe and mid-range support while the electoral commission also extended its mainframe services.

The total value of the contract extensions are US$83.1 million.

Willmott said lower cost of delivery is the main driver behind this growth with the Sydney data centre supporting 73 large banks and insurance companies. WA's Western Power is Australia's only dedicated transmission and distribution business and is responsible for the distribution of electricity in the South West Interconnected System (SWIS).

The SWIS consists of 89,700 kilometers of power lines, 800,000 power poles and 150,000 streetlights.

The utility has more than 2132 core staff, an asset base of nearly $3 billion and services nearly 890,000 customers.

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