One contract is to deliver the migration of Baycorp's New Zealand iSeries-based infrastructure to the pSeries systems and the other is to run the application once it is developed.

This will result in the retirement of Baycorp's RPG-based applications running on the iSeries which Carline described as a "legacy" for which it was increasingly difficult to locate technical skills.

The migration project is expected to cost A$12 million.

"We have taken an approach to selective sourcing, because it gives flexibility to choose different partners for different reasons," Carline said. "For example, the application development was something I couldn't source the skills for in Australia so we are using Capgemini's global resources."

The management of the company's Intel servers is still in-house and it will look to consolidate those internally.