Alstom, the French energy and transport company, is in final
negotiations with Electronic Data Systems for a multibillion-dollar
outsourcing deal.
EDS is to run Alstom's IT infrastructure, applications and related
services in 14 countries. The contract will not include IT hardware
and software embedded in Alstom's products, equipment and systems.
Alstom has an annual IT spend of €400m (£255m) and EDS is believed
to be offering annual savings of €60m.
Some 1,300 Alstom employees will move to EDS under the deal, which
is expected to be finalised in the first quarter of 2003.
The contract is a boost for EDS, which lost out in two major
outsourcing contracts in the past month. Consumer goods
manufacturer Procter & Gamble dropped a one-vendor outsourcing
deal it had been pursuing with EDS in favour of a multivendor
approach.
In addition, finance house JP Morgan announced it was in final
negotiations with IBM for an IT outsourcing deal that could be
worth $5bn.