IBM NEW ZEALAND - MEDIA RELEASE
Heinz Wattie’s signs Multi Million dollar IT outsourcing transformation agreement with IBM
Wellington, New Zealand, 21 June 2005, IBM today announced that it has signed a multi million dollar, nine year
outsourcing agreement to support Heinz Wattie’s Australasia (Heinz Wattie’s Ltd and Heinz Australia) transformation of
its core IT operations.
Under the terms of the agreement IBM Global Services will provide Heinz with e-Business hosting services, application
management services and IT infrastructure development, maintenance and support. The agreement will enable Heinz Wattie’s
to gain greater efficiencies and flexibility in responding to rapidly changing market conditions.
As part of the agreement, Desktop, Intel support and iSeries operational support will be delivered to Heinz Wattie’s and
Heinz Australia by IBM staff in Wellington, Auckland and Hastings.
Ian Gillespie, Heinz Wattie’s Business Systems Manager said that the relationship, which is the latest extension of a
strategic partnership with IBM globally, has many benefits including access to IBM’s deep understanding of the consumer
package goods industry.
“The Heinz Wattie’s – IBM partnership is transforming the way IT services are delivered to the business enabling Heinz
Wattie’s to be more flexible and responsive to the market place. By outsourcing non-core activity to IBM, we can free up
valuable resources to focus on our brands, our customers, our products and the business process continuous improvements
that our customers expect.”
“By extending the partnership across our Australasian businesses, Heinz Watties will achieve even greater cost
optimisation and a more flexible business model through IBM’s variable cost on demand e-business model,” said Ian
Gillespie.
“With IBM taking accountability for day-to-day operation, Heinz Wattie’s’ IS management is freed up to support growth
initiatives and devote more time to strategic planning,” said Ian Gillespie.
Matthew King, Director IBM Global Services New Zealand said, “The agreement will remove fixed IT costs from the business
and give Heinz WattiesWattie’s the flexibility to scale IT resources according to business needs.
“It also provides Heinz Wattie’s with enhanced capability and capacity of resources to meet the portfolio of industry
initiatives that Heinz Wattie’s is implementing,” said Mr King.
“Heinz Wattie’s has sought to move away from owning or leasing assets, to a services arrangement whereby it can source
full end-to-end service through one monthly charge.”
“We expect to see more consumer products companies make this strategic step as they respond to retailer initiatives,
drive for growth and manage costs,” said Mr King.
As part of the agreement IBM will provide IT helpdesk services through its award winning Ballarat call centre. IBM will
also provide desktop services, disaster recovery and network management for Heinz Wattie’s Local Area Network and Wide
Area Network. In addition, Heinz Wattie’s are working with IBM to deliver voice-over IP technology.
Five Heinz Wattie’s employees have joined IBM New Zealand as part of the agreement.
—Ends—
About IBM Global Services
IBM Global Services is the world's largest information technology services and consulting provider. Some 190,000
professionals in more than 160 countries help clients integrate information technology with business value -- from the
business transformation and industry expertise of IBM Business Consulting Services to hosting, infrastructure,
technology design and training services. IBM Global Services delivers integrated, flexible and resilient processes --
across companies and through business partners -- that enable clients to save money and transform their businesses to be
more competitive. For more information, visit www.ibm.com/services.
About Heinz Wattie’s
For more information about Heinz Wattie’s, go to www.watties.co.nz or www.heinz.com.au