Aviva Taps HP-EDS For $1 Billion Outsourcing Deal

Hewlett-Packard subsidiary EDS said Monday that it won a $1 billion contract to provide a range of tech services to insurance giant Aviva.

Under the 10-year deal, EDS will help Aviva manage and transform two data centers in Norwich, England. The data centers serve Aviva's operations in the United Kingdom, India, France, and Ireland.

"Partnering with EDS for data center services, in our view, supports Aviva's goals to improve flexibility, increase operational efficiency, and lower costs," Igal Mayer, Aviva's CEO for U.K. general insurance, said in a statement.

Mayer said Aviva selected EDS "after a thorough evaluation" of the IT service provider field.

EDS will provide the insurer with data center modernization services and help the company manage its mainframe, midrange, and Windows servers. 300 Aviva IT workers will transfer to EDS as part of the arrangement.

"The data center transformation will help Aviva increase efficiency, lower risks, and reduce costs," said Bill Thomas, EDS's senior VP for Europe, the Middle East, and Africa.

HP acquired EDS in August 2008 in a deal valued at $13.9 billion. Since then, the company has signed 16 major outsourcing contracts with a range of customers, including Medicare Administrative Services, the Phoenix Companies, the United States Department of Defense, Virgin Atlantic, and Sara Lee.

HP acquired EDS with an eye to growing its footprint in the market for global IT services after previous efforts stalled.

Shares of HP were up 0.78% to $28.29 in early trading Tuesday as the financial markets rebounded slightly from Monday's sharp selloff.