iba wins 47.8 million contract extension

ANNOUNCEMENT TO THE ASX
IBA wins $47.8 million contract extension with NHS Body
Sydney – 25 March 2008 – IBA Health Group Limited (ASX: IBA) – Australia's largest listed health
information technology company today announced that its UK subsidiary iB Solutions has won a $47.8
million (£22 million) contract with NHS Shared Business Services (NHS SBS) to host its Oracle financial
and purchasing applications for a further five years.
NHS SBS is a specialist outsourcing and technology company which is a joint venture between the UK’s
Department of Health and Xansa (Steria acquired Xansa in 2007). iBS has provided services to NHS SBS
since 2002. The current contract has been extended until 2014.
iB Solutions is providing a fully hosted managed service from its data centre at Prestwich in Manchester
for 2,300 NHS SBS users rising to 3,200 users within two years. The $47.8 million contract excludes
software licences as NHS SBS has its own enterprise-wide agreement for Oracle Financials.
With service centres in Leeds, Bristol, and Hampshire, NHS SBS provides services such as accounts
payable, debt collection, bank account reconciliation, and account reporting, currently processing around
£18bn cash per annum on behalf of 93 NHS organisations.
NHS SBS did examine a number of alternative suppliers, but iB Solutions retained the contract based on
its past record of delivering a high performing, stable and successful solution in partnership with NHS
SBS.
NHS SBS managing director Jim Vincent, said: “iB Solutions provides a cost-effective and highly reliable
service. We enjoy a genuine partnership with iB Solutions, and share a common aim of providing a
superior service which delivers sustainable value to our NHS customers.”
Eamonn Morris, IB Solutions’ managing director, said: “Our relationship with NHS SBS has matured over
the past five years into a partnership where there is mutual respect and trust at all levels. The extension
of the agreement for a further five years to 2014 clearly indicates the strength of our relationship.
“The agreement by NHS SBS to extend its contract to 2014 along with announcements in December of a
$40 million contract with the North East Patches and a $2.75 million deal with six NHS trusts in
November, consolidates the capability of our Oracle e-business centre of excellence while enhancing the
quality of our earnings for many years to come,” concluded Eamonn Morris
In December 2007, NHS Shared Business Services was recognised as a key success for the public
sector by the National Audit Office (NAO), the UK government’s spending watchdog. The NAO predicts
savings of £250 million over 11 years in a report outlining the gains which are starting to be realised as a
result of access to better management information, improved financial control and adherence to
procurement processes.
“The NOA has recognised the benefits over and above the pure financial savings,” Jim Vincent said. “Our
NHS clients are benefiting from improved management information, paperless and faster transaction
handling and the step change in the robustness of processes.