Best Buy Moves IT Support To Canada, Taps EDS - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Business & Finance

Best Buy Moves IT Support To Canada, Taps EDS

EDS will take over the operation of Best Buy's internal help-desk and problem-management services; to do so, it's adding 50 positions at a services center in Winnipeg, Manitoba.

Electronics retailer Best Buy Co. is the latest U.S. company to farm out the operation of an entire department to a third party with an eye to using lower-paid foreign workers.

Under a deal disclosed Tuesday, IT services vendor EDS will take over the operation of Best Buy's internal help-desk and problem-management services. The services are aimed at providing computer support to in-store and corporate staffers at Best Buy. To fulfill the deal, terms of which weren't disclosed, EDS is hiring 50 workers at its services center in Winnipeg, Manitoba.

Best Buy is far from alone in its desire to shift work to low-cost centers. Research indicates that a growing number of big companies are taking advantage of so-called offshore business-process outsourcing. According to research firm Gartner, offshore BPO sales will jump 38% this year to $1.8 billion.

However, the practice is becoming increasingly controversial as companies move work out of the country at a time when the outlook for many U.S. workers remains bleak. As a result, companies are typically tight-lipped when it comes to discussing their offshore-outsourcing plans or engagements. An EDS spokeswoman said she couldn't provide further details about the Best Buy contract "due to our agreement with Best Buy."

Best Buy officials were not immediately available for comment.

Best Buy's outsourcing deal with EDS is the retailer's latest move in an effort to establish a bigger footprint in low-cost service and manufacturing centers. Last week, the company opened its first global sourcing office in Shanghai, China. The 25-person office will work to help Best Buy establish closer ties with Chinese electronics manufacturers.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

Becoming a Self-Taught Cybersecurity Pro
Jessica Davis, Senior Editor, Enterprise Apps,  6/9/2021
Ancestry's DevOps Strategy to Control Its CI/CD Pipeline
Joao-Pierre S. Ruth, Senior Writer,  6/4/2021
IT Leadership: 10 Ways to Unleash Enterprise Innovation
Lisa Morgan, Freelance Writer,  6/8/2021
Register for InformationWeek Newsletters
Current Issue
Planning Your Digital Transformation Roadmap
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll