Alliance developments -- Telstra, IBM and Lend Lease.SAN FRANCISCO--(BUSINESS WIRE)--May 29, 1997--Telstra, IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) Australia and Lend Lease announced their intention to form an alliance subject to completion of negotiations which began with a Heads of Agreement Heads of Agreement A non-binding document outlining the main issues relevant to a tentative partnership agreement. Notes: It is the draft used by lawyers when drawing up the contract. It serves as a guideline for both parties before any documents are legalized. signing in April 1996. Under the proposed alliance Telstra will outsource some of its IT services to ISSC ISSC International Ship Security Certificate ISSC Interstate Shellfish Sanitation Conference ISSC International Social Sciences Council ISSC Integrated Systems Solutions Corporation ISSC Information Systems Steering Committee ISSC Information Systems Sub-Committee Australia and together with IBM Australia and Lend Lease, will form a new network services and network solutions integration company. Negotiations between the parties and arrangements with staff are expected to be completed by the end of July 1997. Telstra will take 26% equity in ISSC Australia of which IBM Australia will remain the majority shareholder. Telstra will have a 50% shareholding in the new network services company. In what is the largest outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. arrangement of its type in Australian corporate history, ISSC Australia will take responsibility for Telstra's data centre operations and will provide certain applications maintenance and enhancement services. To achieve this, up to 2800 Telstra IT staff and contractors will transfer to ISSC Australia. The alliance positions the partners to share in the growth of the IT services business in Asia Pacific through the provision of services to, and through, IBM's country operations. As the workplace becomes more network-based, the proposed network services joint venture provides Telstra, IBMA IBMA International Bluegrass Music Association IBMA Independent Battery Manufacturers Association IBMA Isobutyl Methacrylate (copolymer type) IBMA Intelligent Battle Manager Assistant IBMA Independent Baptist Mission for Asians, Inc. and Lend Lease with the opportunity to participate in the rapidly growing network solutions integration business. About 350 staff from Telstra and ISSC Australia will transfer to the new company which will also be the Australian operator for the IBM Global Network. Telstra will draw on the capabilities of the network services joint venture for support in the international market. Further details of the alliance will be announced by the partners once contracts have been finalized See finalization. . Telstra Corporation Limited is Australia's leading full service domestic and international telecommunications provider and a major carrier in the Asia Pacific region. With annual revenues of more than US$14 billion (Aud$17.2 billion), Telstra offers consumers and businesses a broad portfolio of services including long distance, wireless, local, messaging, Internet services, information services See Information Systems. , outsourcing, and advanced global telecommunications services In telecommunication, the term telecommunications service has the following meanings: 1. Any service provided by a telecommunication provider. 2. . Additional information on Telstra and its services is available by calling 800/799-6283 or viewing Telstra on the Internet's World Wide Web at http://www.telstra.com.au . CONTACT: Telstra Cathy Clarke, 203/532-1339 cnca@ix.netcom.com |
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