Service provider EDS has won a 10-year, US$365 million global contract to support the infrastructure of US human resources company Towers Perrin.
Towers Perrin awarded EDS the outsourcing contract to design, implement and operate IT support infrastructure for Towers Perrin's global network, desktop and hosting environment. EDS would also develop and manage selected applications for Towers Perrin.
"Aligning with EDS will allow us to meet our current business requirements as well as future challenges," said Tony Candito, chief information officer at Towers Perrin. "EDS brings open, best-in-class technology, resources and innovation to manage complexity and rationalise costs within our IT program."
EDS and Towers Perrin also partnered to create a new company with US$600 million in worldwide revenue, serving some 400 organisations and 33 million staff and users in Europe and the Americas.
Towers Perrin's HR services business formerly operated in Australia, but the Australian arm was bought out by Russell Investment Group in September 2004.
EDS said in a statement that the new company would combine EDS' technology and business process expertise and Agile Enterprise Platform with the benefits administration and human resources domain expertise of Towers Perrin.
"Our clients want us to be their HR advocates, listen to their challenges and deliver results that matter to the bottom line," said EDS chief executive Mike Jordan. "This new company will lead the market with smart HR business processes that drive efficiencies and integrate with business intelligence."
EDS will own 85 percent of the new company, and Towers Perrin will own the remaining 15 percent. EDS will pay US$420 million to Towers Perrin as a part of the agreement.