Sydney, Australia, May 26, 2004: Minter Ellison worked closely with Qantas Airways on one of its most significant IT and communications projects of recent years – the outsourcing of the airline’s data centre operations, desktop, voice communications and managed network services.
In May 2004, IBM and Telstra were announced as the successful service providers. As part of the deal, IBM will acquire and manage Qantas’ data centre operations, mainframe and mid-range computing and other managed services over ten years. Concurrently, Telstra will run all the airline’s domestic data, voice and desktop services over seven years.
According to some media reports, this is the largest telecommunications managed services deal in Australia’s history.
Technology and communications play a critical role in the operation of an airline and in the delivery of services to customers. The outsourcing arrangement will slash Qantas’ fixed technology costs and allow the airline to buy computer power as it would a utility.
In contrast to the competitive tender process usually favoured for outsourcing projects, Qantas decided to adopt a collaborative negotiation approach with IBM and Telstra.
Led by technology partner Geoff Shelley, the Minter Ellison team played a significant role in the transactions, working closely with Qantas’ commercial, legal and technical teams for over 12 months.
Minter Ellison has a strong track record in IT&T outsourcing projects in the Asia Pacific region. It has been key adviser to Westpac Banking Corporation, JB Were and SingTel Optus on many of their major outsourcing transactions in recent years. It also regularly advises Australian Commonwealth and State government departments and agencies on their technology outsourcing and procurement projects.
