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StorageTek and EDS expand contract

Storage Technology (StorageTek), a provider of IT data storage products, has expanded an outsourcing contract with Electronic Data Systems (EDS) for another 10 years at a value of $300m (£209m).

The contract calls for EDS to continue to manage part of StorageTek's IT infrastructure, to provide application maintenance and support, and to handle some call centre functions.

StorageTek awarded EDS the original contract in 1995 and extended and expanded it in 1999, an EDS spokesman said on Tuesday. The agreement, which was announced earlier this week, expands the contract by adding the call centre functions and extends it through to 2012, the spokesman said.

The contract stipulates that about 300 StorageTek employees will be offered employment with EDS.

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