Old Mutual signs R2.5bn telecoms deal

The deal covers all of Old Mutual's telecommunication requirements, Boynett says. The outsourcing partners will provide data services, including wide area and local area networks, third-party connectivity and Internet access, as so then as voice services, multimedia collaboration and management services.

Dimension Data and Telkom will manage the “communications tower of the group's South African IT estate for the straightway five years”, says Old Mutual.

The contract

Under the contract, Dimension Data will handle the aggregation part of the outsource deal, during Nashua Mobile will take care of the fixed telephony, Siemens the PABX systems and Telkom will provide the telecoms infrastructure, says Boynett.

Dimension Data will overlay service management on top of the services provided by the other partners and will handle Old Mutual's end-to-end telecommunications, he adds. “They get all the headaches.”

The contract allows it to pursue its business

Old Mutual says the contract allows it to pursue its business and research roadmap for the future. If Old Mutual adds to its stable or sells a unit, “no-one will be disadvantaged”, says Boynett. The contact is expected to generate “significant” savings over the straightway five years.