Hydro deal offers ISV rewards

Global integrator LogicaCMG has signed on for another three years to support and manage electricity generator Hydro Tasmania's IT infrastructure, in a multimillion-dollar deal that could reap rewards for apple isle ISVs.

Bill Richards, MD of the services division of Logica CMG Australia, said the multimillion-dollar contract was essentially a renewal of a similar three-year deal that expired mid-year.

Richards said the new contract included help desk, desktop, LAN and WAN, Unix and NT server support, application support, consulting and project management services across Hydro Tasmania's Hobart, Launceston, Melbourne, Canberra and Adelaide offices.

'It's a mature outsourcing contract and from our perspective it's an indication of their happiness with what we're doing,' he said. 'In winning these contracts, we established a significant office in Hobart and committed to working with local business.'

One Tasmanian geospatial software developer, Geometry, had already teamed up with LogicaCMG as part of the initial deal, he said.

'There are other things in play at the moment but they're all subject to non-disclosure agreements. We want to work with Tasmanian companies to take their skills out there,' Richards said.

He said the number of LogicaCMG staff in Hobart had grown from 35 to 60 over the years. All would to some extent work on the Hydro Tasmania contract, he said.

'We're still employing down there, as we take on new business,' Richards said. 'We'll see things like working with local business to develop work off shore, then there's opportunities for growth depending on success.'

He said LogicaCMG was the largest private sector employer of IT staff in Tasmania.
Hydro Tasmania was preparing for its entry into the national electricity market (NEM), he said.

'What Hydro Tasmania wanted to do was ensure it was locking in a trusted IT supplier for the next three years when it enters the NEM. They wanted that platform and security in place,' Richards said.

The NEM was formed in December 1998 as part of deregulation in Australia's electricity industry. Electricity retailers which buy power from generators on the NEM currently on-sell to 7.7 million customers via a national grid linking Queensland, New South Wales, Victoria, South Australia and the ACT.

LogicaCMG said in a statement that the new contract is the second outsourcing contract between Hydro Tasmania and LogicaCMG and addresses changes to Hydro Tasmania since its separation from the former Tasmanian Hydro Electric Corporation.

Lance Balcombe, GM of the corporate division at Hydro Tasmania, said the deal would allow the hydro-power provider to focus on its core business.

'LogicaCMG's expertise in energy and utilities means we can improve our competitiveness in readiness for the challenge of our entry into the National Electricity Market,' Balcombe said.

Hydro Tasmania operates 50 large dams, 27 hydro, one thermal, two diesel power stations and a wind farm worth a total $3 billion and having a total generating capacity of 2262 Megawatts (MW). The company has about 680 staff and claims to be the largest renewable energy business in Australia.

LogicaCMG supports clients across verticals such as telecoms, financial services, energy and utilities, industry, distribution and transport and the public sector. The European company employs around 21,000 staff across 34 countries and has nearly 40 years of experience in the IT service arena.