The value of the contract was undisclosed, but it is thought to be in the same region as BT’s recent outsourcing deal with Unilever, which was worth £700m.
Under the terms of the agreement, BT Ignite, BT's business services and solutions division, will manage all of Honeywell's voice communications, PBX management, local area network infrastructure and management, mobile and video communications and internet access.
BT Ignite will also manage Honeywell's wide area network, migrating the Wan from frame-relay/ATM to an Internet Protocol based virtual private network.
Based on multi-protocol label switching (MPLS), the IP VPN will enable Honeywell to improve the management and performance of its network while delivering cost savings at the same time, BT Ignite said.
Honeywell's decision to upgrade the network was based on the need to centralise the control and prioritisation of traffic and applications running over it, said Juan Sanchez, vice-president and chief information officer for Europe, the Middle East and Africa at the company.
"Honeywell's global strategy is to focus on our core business and outsource areas that fall outside this,” he said. “Working with BT, we will be able to control costs more tightly, improve our business processes and focus on driving our core business forward."
In a separate deal Computer Sciences Corporation has won an eight-year, £200m outsourcing agreement with Basell, one of the world's largest plastics producers.
Under the deal, CSC will assume responsibility for Basell's global IT infrastructure, including data centre and help desk operations, networks and desktop computers. The outsourcer will also implement a global standard operating environment.