Watson Wyatt and CitiStreet Transition Administration Contract to IBM Services

Watson Wyatt and CitiStreet Transition Administration Contract to IBM Services

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.”

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