McDermott Expands AT&T Solutions Contract



McDermott International Inc., a $3.6 billion energy services company, has expanded and extended its network outsourcing contract with AT&T Solutions. The new contract, announced today, runs for 10 years and is worth about $600 million.

New responsibilities for AT&T Solutions include some business applications, about 10,000 PCs and 350 servers, local- and wide-area networks, and end-to-end networking management worldwide. The original contract, signed in 1995, was for wide-area voice and data networking services.

AT&T Solutions has previously stated that it is not a full-service outsourcer, but a specialist in networking services. However, the company's CEO, Rick Roscitt, has always left the door open to managing computers as well as networks by stating that such services would be provided if customers requested them.

The two companies will work together to standardize McDermott's IT infrastructure for greater effectiveness and efficiency of operations at its New Orleans headquarters and 60 other locations around the world. About 280 IT employees will join AT&T Solutions as part of the new contract.

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