IT services provider ASG Group has won an outsourcing deal with engineering firm Clough which is believed to be worth between $7 and $9 million.
According to a company statement, the agreement covers a range of utility IT services, including 'new world' computing and a full ERP SaaS solution. “The partnership will transition Clough from its traditional insourced model to a more efficient, fully scalable, utility-based model that’s aligned to business outcomes.”
In an interview with CRN, ASG’s Managing Director Geoff Lewis recognised Clough is just one business going through what he described as a “transformation.”
“It’s about wanting access to applications...in the most efficient way, and the most efficient way is the consumption model.
“What I consume, I pay. What I don’t use, I don’t pay.”
ASG first recognised the shift from traditional outsourcing deals to a consumption model towards the end of 2012.
“We got to the point where we had the solutions in place, we had investments in place, we were outselling and outbidding traditional outsourcing deals, but we realised that wasn’t the future.”
“We wanted to show them the value and how innovative the [consumption] solution is.”
The solution has proved popular so far as ASG have signed $76 million worth of new multi-year agreements as of June, including a five-year $11.3 million deal with the Department of Housing and a five-year $14.8 million contract with the Department of Education in Western Australia. And it says there are more big deals to come shortly
Managing director Geoff Lewis said: “Our strategic partnership with Clough encapsulates our mutual vision for how IT services are delivered now and in the future. Our partnership involves a comprehensive transformation designed to modernise Clough’s IT systems and transition the company to New World computing aligned with their global business objectives."
Lewis said customers “are increasingly attracted to ASG’s unique offering of traditional services combined with New World computing with deals often running for between five to10 years.”
Clough CEO and Managing Director Kevin Gallagher said: “Our partnership with ASG will transform our IT function from managing hardware and IT to providing information and technology solutions for our employees and clients. This will result in significant cost savings while providing high-value solutions to many of the technical challenges we face across our business”.
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