Background information on OSA acquisition
14 April 2004
Who/what is Outsource Australia Ltd
The OSA Group was established in 1994 and is a leading provider of business process outsourcing (BPO) services in
Australia and, through its subsidiary Outsource Solutions Limited (OSL), New Zealand.
The development of OSA was as follows: Initial focus was on mail room, courier logistics management, print, copy, and
records management Within three years, OSA established a presence in New Zealand through the creation of OSL. The core
customer base consists of major Australian banks, insurance companies, stockbroking and professional services firms. The
group has since expanded its offering into a financial services, strategic sourcing and property services to provide a
total BPO solution. In 2000 Deloitte Touche Tomatsu became a 20 per cent shareholder. The Group acquired Insight
Technology Ltd, a technology data manipulation and imaging company, in 2001; enabling the group to extend to digital
solutions. In 2002, New Zealand Post bought 30 per cent of Outsource Solutions Limited (OSL).
The existing company structure of the OSA Group is: 100% Insight Technology Ltd (now trading as Converga Pty Ltd) 51%
Outsource Solutions Limited 100% Converga Pty Limited 20% Print Source Australia Pty Limited 45% Purchase Index Pty
For further information visit www.outsourceaust.com.au
Will Datamail own all of OSA? No, this acquisition gives us a 75% share of the company. The other 25% will be owned
Graham Baillie, who remains as OSA’s Chief Executive. The equity structure of OSL will be: 68.25% Datamail 12.75% Graham
Baillie 19% Murray Chapman & Grant Mackenzie
Why is Datamail making this investment? There are many benefits for Datamail: OSA is a profitable business There are
many opportunities for Datamail in the Business Process Outsourcing market (which has grown consistently by 20 per cent
per annum in Australasia for the past ten years in a trend that is expected to continue) and OSA gives us access to a
greater range of them OSA is a strong brand with an established customer base Increased ability to meet customer needs
on a Trans-Tasman basis.
Benefits to OSA include: Access to different but complementary skills Access to leading technology developments Seamless
expansion into off-site service management culture.
How many employees does OSA have? Around 1000 staff across 119 sites, including 313 at OSL.
What will be the combined turnover of Datamail and OSA? NZD160 million
Who is funding the purchase? Datamail’s shareholder, New Zealand Post, who recognises the importance of securing a space
within the BPO arena and the potential of the synergies that already exist between this and Datamail’s skills base.
What are the key differences between Datamail and OSA? One of the major benefits of acquiring OSA is that there are
definite synergies between the two organisations. However there are some differences the way we operate, all of which
will be complementary as we combine. For example, Datamail is focused on outsourced service management while OSA has
‘insider status’ relationships with customers. A further example is that Datamail provides business process management
compared to OSA’s business process re-engineering.
How will the acquisition affect Datamail’s customers? Our customers will benefit from our ability to provide an extended
and seamless service both in New Zealand and Australia. Increased leverage of scale, technology, capital, intellectual
property and customer relationships means we can provide a better service to our customers. This applies particularly to
the customers Datamail and OSA already have in common and those that are shifting their focus from New Zealand to
How can I learn more about OSA? Visit www.outsourceaust.com.au