Gateway has reached an agreement with outsourcing supplier Affiliated Computer Services to terminate a seven-year services contract the companies signed last September.
ACS said the contract is being terminated mutually because of changes required by Gateway since it closed all 188 of its Gateway Country retail stores last month.
Over the next 90 days, ACS will transition the outsourced operations, which include IT operations, human resources, finance, accounting and business process outsourcing services, back to Gateway. The contract produced revenue of $14m during ACS' third quarter, ending 31 March.
In March, Gateway acquired eMachines, which has led to strategy changes for Gateway, including the closing of the stores and the layoffs of some 2,500 workers. Late last month Gateway said it planned another 1,500 layoffs as part of a continuing effort to streamline its operations.
Todd R Weiss writes for Computerworld