SAI GLOBAL LIMITED Head Office
Level 37, 680 George Street Sydney NSW 2000 Australia www.saiglobal.com
SAI Global Limited
ABN 67 050 611 642
MEDIA & ASX ANNOUNCEMENT 20 May 2015 SAI reduces costs through IT management agreement with HCL Technologies
Sydney, Australia, 20 May 2015. SAI Global Limited (ASX: SAI) today announced that it had entered into a managed services agreement with HCL Australia Services Pty Ltd and its Indian based parent company, HCL Technologies Limited (HCL), whereby a number of SAI's IT applications will be managed by HCL.
SAI expects to save around A$27M over the five year term of the agreement from 1 October this year. It is anticipated that SAI's Global IT workforce will be reduced by around 90 employees.
The savings achieved will enhance earnings and enable further investment in SAI's newly integrated, global and regional sales and marketing capability. The FY16 EBITDA impact is expected to be an improvement of A$3M as a result of this initiative.
Chief Executive Officer, Mr Peter Mullins, said: "This is another important step in SAI's evolution to a lower cost, integrated provider of risk management solutions".
"HCL is an industry leader in outsourced IT services and we are pleased to be entering into a partnership with them to improve the efficiency and the costs of delivering SAI products".
"Access to HCL's resources will also enhance our product development capability and enable us to offer better products to our customers".
"Overall, we expect the outcome to be higher organic revenue growth and increased operating margins in FY16 and beyond", added Mr Mullins.
The transition costs of bringing about these changes will be included as significant charges in the FY15 results and form part of the existing A$10M to A$12M of second-half significant charges announced last week in the Company update.
The cost savings announced today are in addition to those resulting from the implementation of the Company's new operating model on 1 July 2015. The new operating model is also expected to reduce non-IT related roles by a further 20 over the coming months.
Peter Mullins - Chief Executive Officer, SAI Global Limited +61 2 8206 6182, +61 450 775 123
Geoff Richardson - Chief Financial Officer, SAI Global Limited +61 2 8206 6805, +61 429 314 698
GRACosway: John Frey +61 411 361 361 or Fleur Jouault + 61 405 669 632
For further information please visit www.saiglobal.com
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About HCL TechnologiesHCL Technologies is a leading global IT services company working with clients in the areas that impact and redefine the core of their businesses. Since its emergence on global landscape after its IPO in 1999, HCL has focused on 'transformational outsourcing', underlined by innovation and value creation, offering an integrated portfolio of services including software-led IT solutions, remote infrastructure management, engineering and R&D services and Business services. HCL leverages its extensive global offshore infrastructure and network of offices in 31 countries to provide holistic, multi-service delivery in key industry verticals including Financial Services, Manufacturing, Consumer Services, Public Services and Healthcare & Life sciences. HCL takes pride in its philosophy of 'Employees First, Customers Second' which empowers its 104,184 transformers to create real value for the customers.
HCL Technologies, along with its subsidiaries, had consolidated revenues of US$ 5.8 billion, as on 31st March 2015 (on LTM
basis). For more information, please visit www.hcltech.com
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