GOVERNMENT
CSC and Motorola Sign $1.6 Billion 10-Year Outsourcing Agreement
- Written by: Writer
- Category: GOVERNMENT
EL SEGUNDO, Calif. and SCHAUMBURG, Ill. -- Computer Sciences Corporation , one of the world's leading information technology (IT) services companies, and Motorola, Inc. (NYSE:MOT) , a global leader in integrated communications solutions and embedded electronic solutions, announced that they have signed a global information technology infrastructure outsourcing agreement. The 10-year contract is valued at approximately $1.6 billion. Under the agreement, which becomes effective May 1, CSC will manage Motorola's midrange, desktop and distributed computing infrastructure worldwide, as well as Motorola's global help-desk and network infrastructure functions. As part of the agreement, CSC will acquire certain Motorola IT infrastructure and network assets. "CSC is pleased to have been selected by Motorola to implement this important agreement," said CSC Chairman and Chief Executive Officer Van B. Honeycutt. "Our extensive experience and broad expertise give us great confidence in our ability to help Motorola achieve significant operational and business results." "Motorola's agreement with CSC is business-driven," said Motorola Senior Vice President and Chief Information Officer Sam Desai. "The agreement reinforces Motorola's continuing commitment to drive efficiency and improve financial performance. At the same time, we expect to gain improved overall service levels as well as improved productivity and quality of services, systems and transactions. Motorola and its employees will benefit by this agreement." CSC will provide significant value by delivering standardized processes, enhanced security, lower costs and an integrated IT infrastructure architecture worldwide, according to Jeff Andrew, a vice president in CSC's Technology Management Group and global account executive for the Motorola engagement. "Motorola will gain not only an improved cost structure but also the flexibility to access state-of-the-art tools and industry best practices across the spectrum of information technology," he said. Mike Manley, corporate vice president and director, global infrastructure solutions for Motorola, said, "A benefit of this agreement is that affected Motorola IT infrastructure employees will be offered employment by CSC. Information technology is CSC's core business. As a result, increased training and advancement opportunities for transitioning Motorola employees will enhance those individuals' career prospects." Approximately 1,300 Motorola employees are expected to join CSC as part of the agreement. Over half of these employees are based in the U.S. The rest are located in the Europe, Middle East, Africa and Asia-Pacific regions, with a small number from Canada and Latin America.