The European division of Hewlett-Packard Co. has won a five-year, $88 million IT outsourcing contract from the European Aeronautic Defence and Space Co. (EADS).
In an announcement yesterday, HP said it will manage commercial data processing services for the Systems and Defence Electronics (S&DE) business unit of Munich-based EADS, which is Europe's largest air, space and defense company.
Under the outsourcing deal, 110 EADS IT workers will become employees of the European division of HP, which will also oversee all of S&DE's hardware and software. HP will run the IT services from new HP offices at three S&DE locations in southern Germany and will be responsible for IT service contracts and the delivery of project and consulting services.
"We expect this agreement will provide better support for our business processes during the strategic reorientation and internationalization of the business unit, as well as clear cost reductions for IT and project services," Christoph Nehrkorn, vice president of services at EADS S&DE, said in a statement.
Susan Pobjoy, worldwide marketing manager for HP services, said the contract is expected to save the European company about 20 percent in IT costs during the next five years. She did not have an exact dollar figure for the expected savings.
Under the outsourcing arrangement, HP will be supporting about 5,000 IT users at EADS, she said.
The contract is evidence of HP's commitment to bringing in large services contracts as a key part of its business strategy, Pobjoy said. "These are the kinds of deals that we made a concerted effort to go after," she said. "We built our capabilities and have grown our credibility over time."
"We won the deal [in competition] against IBM and EDS," she said. "One of our goals is to make sure we're on the list."
Among the applications HP will manage for the aerospace company are SAP R/3 enterprise resource planning software, Internet/Intranet and e-mail and messaging with Lotus Notes and Microsoft Exchange. HP will also oversee call center and user help desk services, network and desktop services and operations management for the network and server infrastructure.