EDS, MCI Ready To 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, MCI Ready To Deal

EDS and MCI WorldCom are nearing completion of reciprocal outsourcing pacts similar to those entered into last week by AT&T and IBM, with a twist: EDS would buy MCI Systemhouse, rather than sell its global network to the telecom as IBM did with AT&T.

"The deals are likely to be signed before the holidays," says George Logemann, director of the outsourcing practice at Yankee Group, an IT research firm. EDS will contract with MCI WorldCom for network bandwidth, while MCI WorldCom will outsource its IT operations to EDS, which would acquire MCI Systemhouse, an IT services unit.

EDS and MCI WorldCom officials declined to comment.

Rumors of such a deal have circulated since MCI and WorldCom merged earlier this year. WorldCom confirmed that EDS and others had put out feelers for possible outsourcing deals in the wake of the merger, but denied any interest at that time. EDS already had an outsourcing relationship with WorldCom, providing some billing services.

Although EDS is in the midst of a leadership transition, replacing current chairman and CEO Les Alberthal with Cable & Wireless plc's Richard Brown on Jan. 15, signing off on the contracts this month would help boost this quarter's backlog of contracts and help satisfy a growth-hungry Wall Street, Logemann says.

Other sources indicate that WorldCom had shopped around first, talking with Computer Associates--which is making acquisitions to build up IT services capabilities--and Science Applications International Inc., as well as with Computer Sciences Corp.

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.

News
Remote Work Tops SF, NYC for Most High-Paying Job Openings
Jessica Davis, Senior Editor, Enterprise Apps,  7/20/2021
Slideshows
Blockchain Gets Real Across Industries
Lisa Morgan, Freelance Writer,  7/22/2021
Commentary
Seeking a Competitive Edge vs. Chasing Savings in the Cloud
Joao-Pierre S. Ruth, Senior Writer,  7/19/2021
Register for InformationWeek Newsletters
Video
Current Issue
Monitoring Critical Cloud Workloads Report
In this report, our experts will discuss how to advance your ability to monitor critical workloads as they move about the various cloud platforms in your company.
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