IT services group Parity has outsourced its IT hardware and telecoms infrastructure to BT in a deal worth £15m.
Under the terms of the five-year agreement BT will design and manage the infrastructure for Parity's businesses across Europe, and a number of Parity IT staff will be transferred to BT.
Although the contract value is the same as Parity's historic IT infrastructure costs, the company's managing director, Rick Bacon, told vnunet.com that he expected cost savings in the long term, although he refused to predict how much.
"We do outsourcing, applications management and support but we don't look after the hardware; that's not our forte," he said.
"We have data networks and telecoms networks connecting offices all over Europe and it's an ongoing cash cost. Going forward this deal will save money because we will avoid having to upgrade and refresh."
The project will also consolidate the infrastructure built up over a series of acquisitions by the IT services group.
This process has already started but is not expected to be completed until the end of next year at the earliest.
"It will be rationalised to a much more resilient set-up. It's a big project and it won't be done overnight, but it will allow us to be much more flexible, for example, when we open a new office," explained Bacon.
"And it will give us much faster access to technology than we would have had if we did it ourselves."
The deal will also introduce new technologies to open up greater possibilities for remote working within the company, particularly among sales staff and consultants.
At the same time, Parity has been awarded preferred supplier status to supply technical consultants to BT's business services division, BT Ignite. The deal is expected to generate revenues of £5m to £7m over the next year.
Parity will take over the contracts of technical consultants currently working either through other agencies or directly for BT Ignite.
The two deals highlight an intention for closer working between the two companies, according to Bacon, which will also see Parity working with BT on joint sales propositions to clients in the public and private sectors.
"For example, delivering e-learning around broadband is an area that BT is very keen to push," he said. "We're a strong believer in strategic partnerships where there's a strong synergistic fit, but it's not something you can force."
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