The contract is being finalised and expected to be signed before the end of 2005. The nominal value of the contract is estimated at about S$95 million for five years. Moving forward, SGX would need to make a significant reinvestment in its IT infrastructure. After conducting a thorough review, it was clear that it would be more efficient to outsource the IT services. Over the contract period, SGX expects to save up to 20% of the projected cost of enhancing its data centre and IT infrastructure services.
“As a leading exchange, SGX is constantly seeking opportunities to increase our organizational agility and achieve greater efficiencies. 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.” said Mr Chew Hong Gian, EVP and Head of Technology Group.
About 48 staff will be transferred to HP. A key criterion in selecting the service provider was its ability to offer the affected staff, positions comparable in role and compensation. Mr Chew said, “Our staff joining HP will have many opportunities to develop professionally and will remain important partners to SGX.”
