Singapore Exchange (SGX) is outsourcing management of its IT infrastructure and data centre operations to Hewlett-Packard (HP) under a five-year deal worth around S$95 million.
Under the agreement about 48 IT staff will be transferred to HP.
SGX says it would need to make a significant reinvestment in its technology backbone in the future and, after conducting a review, it was clear that it would be more efficient to outsource to a specialist supplier. The exchange says it expects to save up to 20% of the projected cost of enhancing its data centre and IT infrastructure services over the course of the contract.
Chew Hong Gian, EVP and head of technology at SGX, says: "The new outsourcing arrangement will allow SGX to focus on our core competencies and strategic imperatives by leveraging on HP's specialist IT resources and best practices. Both our primary and secondary data centres will also be moved to modern facilities that are well-placed to support our needs for high service availability."
The contract is being finalised and is expected to be signed before the end of 2005.