Ford Outsources Benefits To ACS

Affiliated Computer Services, the outsourcer that's in the process of being acquired by Xerox, said it won a contract to provide benefits administration services to automaker Ford.

Under the deal, terms of which were not disclosed Thursday, ACS will provide Ford with a range of services, including the administration of health and welfare, pension, and savings plans. Ford employees will be able to tap the services through an online Web portal maintained by ACS and through ACS' call center operations.

ACS said the financial impact of the deal was reflected in its fiscal fourth-quarter report.

"This new partnership represents our commitment to providing Ford innovation in technology, tools, and processes and delivering total benefits services," said Ann Vezina, executive VP and group president of ACS Enterprise Solutions & Services, in a statement.

"ACS will enable Ford to build further value for its employees and retirees," Vezina said. ACS said it plans to open a customer care center in Allen Park, Mich. to support the contract.

Imaging giant Xerox last month announced an agreement to buy out Dallas-based ACS for $6.4 billion. Xerox hopes to marry its document technology with ACS's back office services.

The deal is one of several to hit the rapidly consolidating business and IT services market.

Tampa-based Sykes Enterprises on Wednesday announced a deal to acquire contact center specialist ICT Group for $15.38 per share, or about $263 million in total, while Dell on Sept. 21 disclosed a deal to acquire Perot Systems for $3.9 billion.

Hewlett-Packard snapped up Electronic Data Systems for $13.9 billion last year.

InformationWeek has published an in-depth report on Dell's $3.9 billion buy of Perot Systems. Download the report here (registration required).