AusPost hands end-user computing to Fujitsu

Australia Post will officially outsource its end-user computing functions to Fujitsu after signing a large-scale deal that will see the provider support the IT needs of the organisation's 36,000-strong workforce.

The contract comes as no surprise after the Australia Post board last month approved management's proposal to offload the work to Fujitsu.

The proposal was first floated in September last year, with Fujitsu named as preferred supplier at the time.

Under the newly-signed contract, Fujitsu will provide all end-user computing services and support to Australia Post's retail outlets, corporate offices, mail and parcel facilities and contact centres. A hardware refresh is not within scope, a spokesperson said.

AusPost declined to provide the length or value of the "long-term" contract. 

The organisation stressed that none of the services will be provided from offshore facilities.

The arrangement means 65 Australia Post end-user computing employees and 18 contractors will now need to accept a voluntary redundancy or try to secure other jobs inside AusPost or Fujitsu. The provider did not disclose how many positions will be up for grabs.

Employees can also apply for 15 newly-created AusPost positions that will govern and manage the Fujitsu contract, predominantly based out of Melbourne.

"The partnership will enable us to deliver services to our business to better enable collaboration and productivity through access to new technology and the ability to scale as required," an Australia Post spokesperson said.

"Like many organisations, we are operating in a challenging business environment. Over the past few years, we have been transforming to better respond to customer needs, and more efficiently deliver products and services."

The transition across to Fujitsu will commence in October this year.

Australia Post expects the Fujitsu contract will allow it to access confirmed pricing for specific service options, access to new technologies, faster speed to market for new products, and the ability to add and remove resources quickly as needed.

The organisation expects to save between $5 million and $8 million through the outsourcing, according to the Communications Workers Union.

The move is the latest in a long line of transformation efforts aimed at turning around the unprofitable government-owned enterprise, which has forecast a full-year loss of $500 million in its upcoming results, thanks to its underperforming mail business.

Technology has formed a key plank of the turnaround effort, with investment poured into programs like digital mailboxes and a developer centre for e-commerce sites.

AusPost recently announced plans to spend as much as $190 million on 1900 voluntary redundancies over the next three years.