Wireless service provider Nextel Communications has signed a $234m
(£164m), five-year IT outsourcing deal with Electronic Data Systems
(EDS).
Under the agreement EDS will manage Nextel's corporate data centre,
database administration, IT help desk, desktop services and other
technical services.
Nextel and EDS have chosen Sun Microsystems as the platform
provider for the contract. All three companies expect to work
together to identify the potential for developing wireless data
systems based on Sun's Java technology.
Nextel said it expects to reduce its costs by $140m (£98m) over the
five-year period.
As part of the outsourcing agreement, 290 Nextel employees will
move to EDS, where they will continue to work to support Nextel's
IT infrastructure.
