Woolworths signs DiData for telco restructure

Woolworths has closed a tender for the restructure of its telecommunications services across all its business and appointed Dimension Data as its integration services partner.

The news follows Woolworths' announcement today of its plans to restructure its telecommunications services as part of the conclusion of a 12 month review and tender process.

Key to the restructure is the company's strategy to shift its services partner from one - Telstra - to a multi-vendor approach for individual service modules.

Woolworths chief information officer Dan Beecham said "as a result of the review, we will take a flexible approach to telecommunications procurement, establishing a framework that encompasses a range of services modules.

"This approach will enable us to better leverage Woolworths' internal capabilities and combine them with the expertise of individual service providers," he said.

Woolworths was not at the liberty to reveal successful applicants across all services modules such as fixed voice services or data network services, but confirmed Dimension Data had signed a five year contract as the integration services manager for Woolworths' enterprise telecommunication requirements.

It includes the management of data services, telephony, security and related infrastructure across Woolworths'  food and grocery, liquor, petrol, general merchandise and consumer electronics retail businesses including Dick Smith.

The value and terms of the contract were confidential.

Dimension Data's Australian CEO Steve Nola said while Dimension Data clearly has the ability to execute when it comes to managing telecommunications and IT infrastructure.

"What sets us apart in the industry is our focus on delivering successful business outcomes, rather than just a technology or operational solution," he said.

Successful respondents to Woolworth's remaining telecommunications tenders will be announced in due course, the company said.

Telstra has confirmed that it will attempt to compete for these tenders.

"Woolworths is a great Australian company and we will continue to talk with them about the value Telstra can bring in the other service modules," a spokesman for the telco said.