The state of Connecticut said yesterday it's negotiating a seven-year, $1 billion contract with EDS to outsource its executive branch IT and telecommunications operations. The Connecticut deal, which the state legislature must approve, will centralize management of the state's computer operations and include initiatives such as integrated ERP and a statewide network for information sharing and data access. EDS plans to open an IT facility in Hartford, and is expected to offer jobs to the state's approximately 600 IT personnel, says Connecticut CIO Gregg "Rock" Regan.
Connecticut chose EDS over competitors such as IBM and Computer Sciences Corp. after more than a year of evaluation and debate. State officials were impressed with EDS's proposal for improving the state's business processes and leveraging technology across dozens of agencies, Regan says.
Outsourcing is expected to save the state at least $700 million. Connecticut aims to have details of the contract hammered out within four months. The state's legislature is expected to vote on the plan by the end of the summer, says Regan.