American Express Outsources To HP-EDS

Hewlett-Packard said its EDS outsourcing unit has secured a five-year deal to provide a range of technology services to financial services giant American Express. An HP spokesperson on Tuesday declined to provide information about the agreement's financial terms.

The deal calls for EDS to provide a number of IT services to American Express, including management of desktop, voice, and data networks. EDS also will provide on-site tech support for about 60,000 American Express employees in more than 130 countries.

American Express officials said they're hopeful that the arrangement will allow the company to increase IT innovation and flexibility while reducing costs.

"Our goal is to drive American Express' growth, innovation, and customer service using secure technology that enables a more productive, efficient, and collaborative workplace," Matthew Robinson, American Express' CTO, said in a statement.

HP-EDS officials said the contract is that latest proof point that Hewlett-Packard's $13.9 billion acquisition of Plano, Texas-based EDS, completed last year, is paying dividends.

"American Express was looking for a partner to manage and transform its technology environment for better business outcomes," said Mark DeBenedictus, VP for financial services at EDS. "To do this, we're combining EDS' financial services industry knowledge with workplace and network services expertise."

Under CEO Mark Hurd, HP acquired EDS with an eye to building out its presence in the IT services and outsourcing markets and challenging industry leader IBM.

HP in the most recent quarter reported that services revenue increased 99%, to $8.5 billion, in the most recent quarter, primarily as a result of the EDS acquisition. IBM, by contrast, reported services sales of $13.2 billion in its most recent quarter.

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