IBM wins $1m TV web deal

TVNZ has selected IBM Global Services to implement its web-based i2 procurement system, in a deal believed to be worth under $1 million, including software and hardware.

Strategic procurement manager Andrea Gregory said the software, which is due to go live in April, should pay for itself within 15 months.

"We expect significant savings, and that return on investment doesn't include savings from strategic sourcing," Mrs Gregory said.

She said that because TVNZ was a services rather than product-oriented organisation, much of the project had been around improving relationships with suppliers of services.

As well as getting the implementations job, IBM helped TVNZ with the initial business case for the project and helped identify areas in which savings could be made.

IBM's Trevor Cameron said that as well as cost reduction, TVNZ was looking for more control, accountability and discipline in its procurement processes.

"At this stage the focus is around indirect purchasing rather than direct activities such as programming, but TVNZ has a vision of a single system in future."

Mr Cameron said implementation would involve five people from IBM and a similar number from TVNZ.