Telecom signs three outsourcing deals in a week

26 Jun 2003

New Zealand’s largest telco, Telecom New Zealand (Telecom) yesterday announced its third outsourcing deal in a week. Under the terms of the agreement Alcatel’s Australian branch will take greater control over the design and running of its wholly owned Australian subsidiary AAPT, for a payment of AUD53 million (NZD60 million); the contract is valid for five years. Last week Telecom announced two other five year deals, one with Lucent Technologies to manage its domestic 027 CDMA mobile network, and one with Alcatel in New Zealand to take increased responsibility for the planning, development and operations of its fixed line network; the latter is worth NZD120 million. The three contracts will involve a total of 350 staff being transferred to Lucent and the two Alcatel divisions, leaving Telecom with around 4,500 staff in New Zealand. Telecom said that the savings it has made from the three contracts are modest, and it does not plan to undertake any further outsourcing deals in the near future.

New Zealand