EDS And MCI WorldCom Firm Up $12.4 Billion Outsourcing Deal - 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.

IoT
IoT
News

EDS And MCI WorldCom Firm Up $12.4 Billion Outsourcing Deal

EDS and MCI WorldCom today finalized two outsourcing agreements worth $12.4 billion over the next 11 years allowing for the transfer of IT services and personnel between the companies.

In an agreement worth $6.4 billion, 1,300 MCI WorldCom employees will transfer to EDS as EDS assumes IT system operations at more than 12 MCI WorldCom processing centers worldwide. In the other direction, EDS will outsource the network operations, management, and engineering functions of its global network operations to MCI WorldCom, in a deal worth about $6 billion, transferring 1,000 EDS employees to MCI WorldCom in the process.

As first announced in February, EDS and MCI WorldCom hope to better position themselves to capitalize on rapid growth in electronic business and global communications services. "These agreements allow our companies to grow our core businesses and expand service on a global basis. Each company is now better positioned to provide customers with premier communications infrastructure and information technology services," says John Sidgmore, vice chairman of MCI WorldCom.

"EDS sees MCI WorldCom as a networking provider that we are comfortable outsourcing our network operations, network management, and network engineering and design to," says Dan Zadorozny, EDS client executive for MCI WorldCom. "MCI WorldCom will make hard-core investments in switches and fibers, so EDS will keep its network under WorldCom control, rather than entering into a situation where EDS's network traffic is handed off from provider to provider."

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
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Slideshows
Reflections on Tech in 2019
James M. Connolly, Editorial Director, InformationWeek and Network Computing,  12/9/2019
Slideshows
What Digital Transformation Is (And Isn't)
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/4/2019
Commentary
Watch Out for New Barriers to Faster Software Development
Lisa Morgan, Freelance Writer,  12/3/2019
Register for InformationWeek Newsletters
Video
Current Issue
The Cloud Gets Ready for the 20's
This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
White Papers
Slideshows
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