Oil giant Shell has signed a five-year deal worth $1.6bn with AT&T to manage its worldwide communications infrastructure, which includes mobile telephony.
The agreement is one of three outsourcing contracts signed by Shell with key suppliers for networking and IT services.
AT&T will provide managed network services to Shell and its subsidiary companies in more than 100 countries. It will deliver wide area and local area networks, voice services (including Internet-based telephony), managed security solutions and mobility services.
AT&T will also manage more than 600 separate communication contracts with more than 300 vendors around the world. These contracts include agreements for local connectivity provided by regional telephone companies, contracts with individual service providers and various other maintenance and operations deals.
"This important agreement with AT&T reflects our determination to accelerate Shell's essential IT capability, optimize our operations and ensure we can provide best-in-class IT services to support our global business," said Alan Matula, chief information officer for Shell.
Shell will retain core skills within its own IT department. Approximately 560 Shell networking professionals located predominantly in the Netherlands, Malaysia, the UK and the US are expected to transfer to AT&T, joining the company's worldwide workforce of 300,000.