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3/27/2003
03:49 PM
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Motorola Signs $1.6B, 10-Year Outsourcing Deal

The company is doffing a chunk of its IT infrastructure. The move is part of an effort to trim 3,000 jobs by July.

Motorola is farming out much of its information infrastructure to Computer Sciences Corp. in a deal valued at $1.6 billion. The 10-year contract, announced Thursday, includes the transfer of 1,300 Motorola workers to CSC.

Beginning May 1, CSC will begin running desktop and midrange technology, including global help-desk and network operations. It also will acquire some of Motorola's physical IT infrastructure and network assets.

The second-largest maker of wireless phones says the agreement will help it improve efficiency and service. Of the employees transferred, more than half are based in the United States, with most of the rest in Europe, the Middle East, and Africa. Motorola, which has 95,000 employees, is cutting its workforce to 93,000 by July.

The deal is a coup for CSC. Service firms have been hit hard by the economic slowdown. It's the first big services deal CSC has signed in nearly a year.

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