StorageTek, EDS extend $300M outsourcing deal

Storage Technology (StorageTek) has decided to extend and expand an outsourcing contract with Electronic Data Systems (EDS) for 10 more years at a value of US$300 million, the companies announced Monday.

The contract calls for EDS to continue to manage part of StorageTek's IT infrastructure, to provide application maintenance and support, and to handle some call center functions, the companies said.

StorageTek awarded EDS the original contract in 1995 and extended and expanded it in 1999, an EDS spokesman said Tuesday. The agreement announced Monday expands the contract by adding the call center functions and extends it through 2012, the spokesman said. The contract's value between now and 2012 is $300 million, he added.

The contract also stipulates that about 300 StorageTek employees will be offered employment with Plano, Texas-based EDS. StorageTek is a provider of IT data storage products and is based in Louisville, Colorado.

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