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Vodafone Defines Deal with IBM and EDS

Posted on 3-Nov-2006 13:35 | Filed under: News


Vodafone has agreed the terms under which EDS and IBM will manage its application development and maintenance services in a recently announced global IT outsourcing deal.

Vodafone's operating companies in Germany, the UK, Hungary and the Netherlands will work with EDS as their outsourcing partner. Vodafone's operating companies in Spain, the Czech Republic, Australia, New Zealand, Portugal, Ireland, Greece, and, subject to board approval, Italy, will work with IBM as their outsourcing partner.

Each contract is set to run for seven years with Vodafone retaining the right to bring it to a close earlier if required. The outsourcing partners will provide application development and maintenance services for key IT systems.

Vodafone will retain full strategic control of the initiative, which focuses on writing code for and maintaining systems such as billing and Customer Relationship Management applications.

Vodafone expects that the first wave of Vodafone operating companies will begin to adopt the new arrangements from early 2007, with the others following suit throughout the rest of 2007.

The company says it has identified the potential to reduce unit costs by 25 to 30 percent within three to five years. Activity levels on application development and maintenance during the last financial year resulted in a spend of around GBP 560 million.