Gateway Inc., the $7.5 billion direct marketer of PCs, disclosed today that it has signed an agreement in principle to award a five-year outsourcing contract worth several hundred million dollars to Lockheed Martin Integrated Business Solutions Co. for support of all its IT infrastructure. Legacy applications management was subcontracted to Keane Inc.
Nearly all IT employees of Gateway will be given opportunities to join Lockheed and Keane, according to Maynard Webb, CIO at Gateway. However, Gateway is retaining some IT employees for projects in electronic commerce, knowledge management, and next-generation enterprise resource planning, and "we are aggressively hiring in those areas." Webb declined to identify how many IT employees will be affected by the agreement.
The contract is expected to be signed and effective soon, in time to help Gateway migrate over the July 4th weekend to year 2000 compliant versions of J.D. Edwards' financial and manufacturing applications, and from another vendor's order-management system to J.D. Edwards'. Gateway is currently considering whether to move to SAP's or J.D. Edwards' OneWorld ERP systems in the near future.