Telstra breaks up IT in latest restructure

Telstra is to split its internal IT function between three groups as the carrier commences its third operations restructure in four years.

An internal memo to staff from chief operations officer Brendon Riley, obtained by iTnews, details a new model for Telstra Operations consisting of five vertically-oriented "delivery groups" and five "functional groups" that cut across the Operations organisation.

A new delivery group, 'IT Solutions' has been set up to "provide Telstra-wide technology and architecture leadership that is simple and scalable". It is to be led by current CIO Patrick Eltridge.

Telstra's Network IT and Operations (NITO) unit, set up in a 2010 restructure, will be renamed 'Telstra Service Operations'.

It remains under the guidance of Craig Hancock and retains its remit to "operate all networks and IT systems including performance monitoring, incident, change and problem management".

Service Operations is also to take on "security strategy and standards". It was unclear if this was a new responsibility, but a Telstra spokeswoman did confirm to iTnews that the group would be taking in some functions that previously sat under the broader IT domain.

Telstra's spokeswoman also said the remit for data centre facilities would shift into a new functional group called 'Assets & Facilities Management'. The carrier is yet to appoint a lead for the facilities group.

"The majority of IT will transfer to the new IT Solutions delivery group," the spokeswoman said.

"In the new operating model some functions in IT today will move to the new Assets & Facilities Management and Telstra Service Operations functional groups."

Riley said that the latest restructure of Operations was required "if we are to continue supporting the company's future needs".

"We need to re-distribute our priorities, expenditure and investment," he said in the internal memo.

"Our traditional businesses are coming under increasing margin pressure and the largest portion of our budget is spent supporting them.

"This is not a sustainable business model and we have an obligation to redefine our contributions to Telstra".

The new Operations model is set to come into effect on July 1.

Riley said the transition "won't be an easy process" and said that he would be "open and upfront about the changes this new model may bring".

The memo did not say whether or not the latest restructure would result in job losses.

Under the restructure, Telstra will keep its NBN and Network Applications & Services delivery groups as before. The latter covers enterprise and business offerings.

Telstra's last IT restructure was in July 2011. This saw the IT group absorb enterprise architecture responsibilities, among other changes.

A year earlier in July 2010, Telstra had split those same enterprise architecture responsibilities out of IT, as well as the day-to-day operational responsibilities for systems.