EDS extends two services contracts

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EDS extends two services contracts

Electronic Data Systems has signed $240m (£153m) in IT services contract renewals with existing customers Weyerhaeuser and Integral Energy.

The contract with US timber company Weyerhaeuser extends and broadens an IT outsourcing deal to include infrastructure services delivery to the former operations of Willamette Industries, which Weyerhaeuser recently acquired.

Under the terms of the agreement, which were not disclosed, EDS will provide a range of IT services to fully integrate the infrastructure of Willamette, another timber company, with Weyerhaeuser's infrastructure and create a common operating system for the expanded enterprise.

EDS said the services it will deliver to the former Willamette sites across the US include network, desktop and server management, and mainframe and helpdesk services.

Under the contract originally signed in December 2000, EDS will continue to provide those same services to Weyerhaeuser throughout North America. The extended agreement builds on a contract the companies announced in September outlining Weyerhaeuser's plans to introduce a common operating system throughout the company.

As part of the agreement announced yesterday, some of Willamette's former employees will move over to work for EDS. A Weyerhaeuser spokeswoman declined to say exactly how many employees will be involved in that shift.

EDS has also renewed its technology outsourcing agreement with Australian power utility company Integral Energy.

The two-year agreement, the terms of which were also not disclosed, extended the original contract signed in 1996 and involves a range of IT and communications services.

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