HP secures aerospace contract

The European division of Hewlett-Packard has won a five-year, $88m (£61m) IT outsourcing contract from European Aeronautic...

The European division of Hewlett-Packard has won a five-year, $88m (£61m) IT outsourcing contract from European Aeronautic Defence and Space (EADS), Europe's largest air, space and defence company.

HP said it would manage commercial data processing services for the Systems and Defence Electronics (S&DE) business unit of Munich-based EADS.

Under the deal, 110 EADS IT workers will become employees of the European division of HP, which will also oversee all of S&DE's hardware and software.

Among the applications HP will manage are SAP R/3 enterprise resource planning software, Internet/Intranet and e-mail and messaging with Lotus Notes and Microsoft Exchange.

HP will also oversee call centre and user help desk services, network and desktop services and operations management for the network and server infrastructure.

HP will run the IT services from new HP offices at three S&DE locations in southern Germany and will be responsible for IT service contracts and the delivery of project and consulting services. HP will be supporting about 5,000 IT users at EADS, she said.

"We expect this agreement will provide better support for our business processes during the strategic reorientation and internationalisation of the business unit, as well as clear cost reductions for IT and project services," said Christoph Nehrkorn, vice-president of services at EADS S&DE.

Susan Pobjoy, worldwide marketing manager for HP services, said the contract is expected to save EADS about 20% in IT costs during the next five years.

HP beat IBM and EDS to secure the deal.

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