SOURCE: IBM

January 08, 2008 12:29 ET

Watson Wyatt and CitiStreet Transition Administration Contract to IBM Services

SYDNEY, AUSTRALIA--(Marketwire - January 8, 2008) - Leading global consulting firm Watson Wyatt Australia and global retirement plan administrator CitiStreet Australia today announced that they have mutually decided not to continue their contract which has been in place since 2004 and under which CitiStreet provides Watson Wyatt with administration services for its corporate stand-alone superannuation clients.

As a result, Watson Wyatt today announced a long-term Business Transformation Outsourcing (BTO) Services agreement with global business consulting and technology organization IBM (NYSE: IBM). Under the terms of the agreement, signed in the fourth quarter of 2007, IBM will assume operation of the administration of Watson Wyatt's corporate superannuation client back-office functions in Australia.

After a strategic review by senior management, CitiStreet has instead decided to sharpen its focus towards providing superannuation administration and related services to Industry Funds and Corporate and Retail Master Trusts.

The agreement with IBM will involve the transition of the Watson Wyatt back-office processing business, currently outsourced to CitiStreet, to IBM. A number of CitiStreet employees currently dedicated to the Watson Wyatt account will transition to IBM.

Andrew Boal, Managing Director of Watson Wyatt Australia, said, "We thank CitiStreet for the services they have provided over the past three years. Following their recent decision to focus on Industry Funds and Master Trusts, we are excited to announce this new outsourcing agreement with IBM. Watson Wyatt Australia is committed to providing high quality actuarial, consulting and administration services to Australian superannuation funds, and the employers who support them, and we are confident that this agreement will support our business well into the future."

Stuart Korchinski, CEO of CitiStreet Australia, said: "We are pleased to create a smooth transition for Watson Wyatt's corporate clients and our staff who service these clients. We are also excited about our refined strategy for the future. CitiStreet sees enormous growth opportunities in focusing on rapidly growing, large Industry Funds and Master Trusts.

"Our plan is to enable large Industry Fund and Master Trusts to grow their businesses by applying our global wisdom to the Australian market. As they grow, we expect to grow," Mr. Korchinski concluded.

Jackie Korhonen, Vice President of IBM's Managed Business Process Services, said, "Member benefits administration is a process and technologically driven business. IBM's heritage and strength in this area, combined with its business and IT consulting methods, will enable it to bring new levels of member service and operational efficiencies.

"Together with Watson Wyatt, we are keen to expand our market share in the corporate superannuation sector and we view this arrangement as very beneficial to not only our respective organizations, but also to current and future clients," she said.

About Watson Wyatt

Watson Wyatt (NYSE: WW) is the trusted business partner to the world's leading organizations on people and financial issues. The firm's global services include: managing the cost and effectiveness of employee benefit programs; developing attraction, retention and reward strategies; advising pension plan sponsors and other institutions on optimal investment strategies; providing strategic and financial advice to insurance and financial services companies; and delivering related technology, outsourcing and data services. Watson Wyatt has 7,000 associates in 31 countries. For more information about Watson Wyatt visit www.watsonwyatt.com

About IBM

For more information about IBM visit www.ibm.com

About CitiStreet

CitiStreet is one of the world's largest and most experienced specialists in benefits services with more than $US220 billion in assets under administration, serving more than 11 million participants across all markets. It also has a division, CitiStreet Australia, with offices in Sydney, Melbourne and Brisbane, with nearly 700 employees. CitiStreet is a 50/50 joint venture between State Street Corp. (NYSE: STT) and Citigroup (NYSE: C). For more CitiStreet information, visit the Web site at www.citistreetonline.com or www.citistreet.com.au.

Contact Information

  • For more information contact:

    Sheridan Lee
    PR Consultant
    SHED
    Telephone: +61 (2) 9247-8533
    Mobile: +61 411 101 492
    Email: shed@ozemail.com.au

    Alex Kleiman
    Senior Vice President, Marketing & Strategy
    CitiStreet Australia Pty Ltd
    Telephone: +61 (2) 02 9238 3638
    Email: akleiman@citistreet.com.au

    Jenna Gable
    IBM Media Relations
    Telephone: (917) 472-3512
    Email: gablej@us.ibm.com