Woodside severs HP deal before contract ends

Oil and Gas giant Woodside Petroleum has severed ties with outsourcer Hewlett-Packard one year before the contract was due for renewal.

Computer Science Corporation (CSC) has moved in to fill the gap by inking an initial 12-month deal with the petroleum company.

Before ousting HP, Woodside Petroleum had a three-year contract with the vendor for IT infrastructure management including desktops, laptops, servers, storage and helpdesk services.

The deal was worth $50 million and signed in 2004.

While Woodside Petroleum was unwilling to comment on why the deal ended prematurely, HP confirmed the contract was cut short by one year, adding that HP will continue to supply some services to the company apart from the former outsourcing arrangement.

HP spokesperson Stephen Ries said the contract ended because Woodside wanted to pursue a selective sourcing arrangement.

"HP and Woodside have mutually agreed to disengage their outsourcing contract," Ries said.

"This will allow Woodside to pursue a new, selective outsourcing model for the remaining 12 months of the contract."

CSC has just begun a two-month transition period working with incumbent HP and will take the reins from September 2006, initially for 12 months.

The contract includes provisions for helpdesk, desktop and server support, problem management, change management and asset management.

A CSC spokesperson confirmed the company is hoping to "build on the terms of the relationship".

CSC Australia CEO Mike Shove said Woodside is putting a great deal of faith in the company.

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