Tuesday, 10 May 2005 05:00

IBM a casualty as Medibank takes a broom to IT outsourcing


Health insurer Medibank Private has axed IBM as its whole of enterprise outsourcer, replacing Big Blue with a gaggle of suppliers for different areas of its IT functions.

New suppliers to win contracts with Medibank under a selective outsourcing arrangement include Telstra, Datacom Systems and Getronics, while IBM will retain management of Medibank's mainframe systems.

The new IT outsourcing strategy at Medibank closes a chapter on the discredited whole of enterprise outsourcing strategy, which in the past decade has proven to be a miserable failure in both the government and private sectors globally.

Datacom Systems was named as the winner of the strategic midrange services and facilities management contract. Under the terms of the multi million dollar three year deal, Datacom will centralise the Medibank's operations to its Melbourne-based GlobalCenter data centre.

The agreement involves consolidating Medibank Private's extensive Midrange and Intel server infrastructure (currently located at five independent sites) into Datacom's purpose-built, secure GlobalCenter facility and a separate DRP facility, centralising Medibank Private's entire IT midrange infrastructure. Datacom assumes full responsibility for Medibank Private's environment, including 24x7x365 management, operational and technical support of its DB2, Wintel and Unix infrastructure.

Surinder Singh, CIO of Medibank Private, said, 'Datacom responded to our need to transition our entire Midrange environment, housed in five separate data centres, to their facilities seamlessly, and to provide a facilities management environment that was secure and responsive."

The midrange infrastructure and services were transitioned over a four week period with no disruption to the Medibank business, according to Datacom.

Of the other tender winners, Telstra will look after network services and Getronics will provide help desk and desktop services.


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Stan Beer


Stan Beer co-founded iTWire in 2005. With 30 plus years of experience working in IT and Australian technology media, Beer has published articles in most of the IT publications that have mattered, including the AFR, The Australian, SMH, The Age, as well as a multitude of trade publications.



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