Media releases

May 9, 2005

Medibank Private realigns IT to deliver business needs

Medibank Private has exited from all but the mainframe services provided under an information technology and telecommunications agreement with IBM GSA, with a successful transition to a multi-vendor selectively insourced / outsourced service delivery model, significantly reducing its infrastructure and services costs.

The five-year agreement, which was part of the Whole of Government outsourcing program, was originally awarded to IBM GSA in 1999, with additional services added in 2000. Medibank Private's decision not to renew the agreement and to transition to a combined insourced / outsouced service delivery model follows a strategic review of its outsourcing arrangements within its broader IT strategy.

Medibank's IT strategy review included a closed, rigorous and competitive tender process, and focused on rationalising the delivery mechanisms of IT services by building internal capabilities and establishing partnerships with specialist service providers.

The midrange services and facilities management contract was awarded to Datacom Systems, Getronics will manage desktop outsourcing and the IT Helpdesk, and Telstra will look after the managed network services. Medibank retained IBM GSA for its mainframe operations under a two-year deal whilst its core systems are replaced.

The review and outsourcing project was managed internally and completed over a 12-month period. It included a physical separation of Medibank's shared mainframe environment from the Health Insurance Commission (HIC) to create a mainframe environment dedicated to meeting Medibank's business objectives.

Medibank Private Chief Information Officer, Surinder Singh, said, "The transition of the various segments and services was seamless with no disruption to the business."

"Our new sourcing strategy is fundamentally about improving business flexibility and services to our members.

"The combination of selective outsourcing and co-sourcing arrangements will result in cost savings and improved service quality, will allow us to adapt to changing market demands and essentially align our business and IT strategies." Mr Singh said.


For further information please contact:
Libby Woolnough, Media Relations Adviser, Medibank Private on 03) 8622 5181 or

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