California City Extends Outsourcing Deal

Affiliated Computer Services said Monday that it has signed a three-year extension to its contract to operate computer systems for Orange, a city of 135,000 situated 30 miles southeast of downtown Los Angeles. The extension runs through June 2007 and is worth about $4.2 million, according to ACS.

Under the deal, ACS will continue to provide Orange with a range of IT services, including help-desk and application support and data-center management. It will also provide network-management and consulting services.

Last year, ACS sold the bulk of its federal outsourcing business to Lockheed Martin Corp., but the company remains a strong player in the local and state IT outsourcing market, from which it derives 54% of its annual revenue.