NZ Post give network services contract to Vodafone, aiming to cut $19.2M annual spend

Thursday 24th July 2014

New Zealand Post, the state-owned postal service, has awarded a five-year contract to Vodafone New Zealand to redesign its network services.

No value was put on the contract but Post's June 2013 request for proposal, or RFP, for network as a service, said the current annual spend was $19.2 million excluding mobile voice and data services, and the company was looking for a significant reduction.

“The current New Zealand Post IT network is complex and difficult to manage," chief financial officer Mark Yeoman said. "New Zealand Post was looking for a way to improve efficiency, take advantage of current-day technology, reduce cost, and easily flex the network as its business changes.”

"Vodafone will provide services including network connectivity, voice services, Wi-Fi and video conferencing as well as a suite of security services," the postal service said in a statement.

NZ Post is planning to eliminate up 2,000 jobs over three years, while cutting back the frequency of deliveries as it attempts to keep pace with falling volumes of mail.

In April it announced the sale of its unprofitable online director Localist and this week said it hired 333 Capital to help sell its Australian Couriers Please unit.

BusinessDesk.co.nz

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