Motorola is to outsource a variety of computing systems tasks to Computer Sciences Corporation (CSC) in a 10-year deal worth £1bn.
The chip manufacturing giant is handing over the infrastructure part of its global IT operations, which includes the day-to-day management, support and maintenance of Motorola's mid-range systems, desktop platform, data centres, help desk and network.
Mike Manley corporate vice-president and director of Motorola's global infrastructure solutions, said, "This is, so far, the most significant sourcing arrangement we have within IT."
Motorola will not outsource work related to enterprise applications, such as their architecture design and development, Manley said. Work related to IT security, governance, standards and oversight will continue to be handled by Motorola.
Motorola chose CSC over IT services rivals IBM, Electronic Data Systems (EDS) and Affiliated Computer Services, Manley said. CSC's plan stood out from the rest for a variety of reasons, including its cost, technology proposal and commitment to offer comparable compensation packages to the 1,300 Motorola IT employees who will transfer to CSC.
About half of those employees are in the US and the rest mostly in Europe, the Middle East, Africa and Asia-Pacific. Some will continue to work on site at Motorola facilities, while others will work out of CSC offices.
The contract also calls for CSC to buy Motorola IT assets. Manley declined to provide further details about which assets CSC will snap up.
Motorola expected that CSC would streamline and standardise IT processes, integrate its IT infrastructure architecture worldwide and lower IT costs.