Perth-based IT company ASG Group has won a $35 million contract to provide its services to contractor CIMIC Group over a five-year term.
The scope of work will see ASG provide application and infrastructure managed services to Cimic, and will provide support to mitigate the company’s conversion to ASG’s new world service model.
The terms of the contract also involves the transfer of a number of key personnel and assets to ASG.
“This engagement is significant for ASG, given it was highly competitive against a number of tier 1 low-cost offshore providers,” ASG chief executive Geoff Lewis said.
“We are seeing a fundamental change in the conversations clients are demanding. Increasingly these conversations are about business efficiency and effectiveness, and being problem solvers rather than being the cheapest technology provider.
“This shift will be hard for many organisations to make is it will require a complete change to their DNA,” he said.
ASG said it was in exclusive negotiations for over $90 million worth of opportunities.
The contract win builds on ASG’s $80 million work pipeline.
Shares in ASG were 8.9 per cent higher to 98 cents at 10am.