In June Perpetual announced its Transformation 2015 programme which is intended to streamline the organisation. IT outsourcing was always intended to form a key plank of that initiative.
Fujitsu will spend the next four months on “establishment activities” and hopes to take over running Perpetual’s IT early in 2013.
The company has already embarked on significant cost cutting exercises and reduced headcount from almost 1,500 to just over 1,000 in the last year. Perpetual has already drawn up a list of IT staff and asked Fujitsu to offer them positions, although how many staff are involved is not clear.
Perpetual released its annual results today which showed a net profit after tax of $26.7 million. However it has taken an impairment charge of $12.5 million reflecting the lower value that the organisation has placed on its IT infrastructure following a technology review conducted during the first half of this year.
“It’s very clear they have recognised the need for a business wide transformation of the technology platforms for their business,” said Mr Clarke. Asked whether he was concerned at the scale of the IT impairment charge, and what that might signal about the state of the IT equipment Fujitsu will have to operate – at least initially - he said; “I’m not too bothered about what state it’s in – we have a vision of where to go.”
Initially Fujitsu will provide a straight outsourcing service to Perpetual, but Mr Clarke said that; “I think as we progress down the transformation there will be the opportunity to embrace cloud services at an appropriate time.”
The contract, which was signed last night, is for an initial five year term with two, two year extensions.