Oil giant Shell has signed a $1 billion IT outsourcing contract with EDS for five years, a few days after it announced a $1.6 billion contract with AT&T to manage its network and communications.
Under the terms of the agreement, EDS will manage Shell's end-user computing services including desktop, service desk, on-site services, back-up and disaster recovery, mobile information protection and managed messaging services, for 150,000 users in over 100 countries across its global operations.
Approximately 1,500 IT professionals, including Shell full-time employees and contractors currently working for Shell, will join EDS, in 65 countries globally. Services in some joint ventures remain outside the scope of this agreement.
"EDS has a significant global presence and proven experience in large scale IT outsourcing. We have asked them to apply their broad experience and act as operational integrator toward our other key partners," said executive vice president and chief information officer Alan Matula. "Shell demands consistent and agile IT support to operate in a competitive global industry."
EDS will support Shell's business by enabling high-speed desktop deployments using Microsoft Windows Vista operating system to existing, remote and new locations. EDS will also act as operational integrator, collaborating closely with Shell's other key IT suppliers.
"Interest in the service integrator model for multisourcing is increasing - even though actual implementations and examples of this model remain relatively small," said Ovum Research Director, John Madden. "One goal in this model is for a service integrator to reduce the overall complexity of managing multiple IT service suppliers, and to take some of the pressure off a customer's internal in-house team."