EDS Friday entered a 10-year, $800 million deal with Telecom New Zealand to supply IT services. The company also signed a deal with Microsoft to develop and deliver electronic business solutions.
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The contract represents the largest technology services ever signed in New Zealand.
Under terms of the deal, Telecom New Zealand will take a stake in EDS New Zealand, with the option of purchasing up to 49 percent of the company over the next four years. The telecom will also join EDS New Zealand's board of directors.
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The two companies' alliance with Microsoft will target government and business markets with a range of electronic business and other online service offerings, according to Steve Smith, EDS New Zealand's managing director.
"The electronic integration of businesses with their customers and suppliers driven by Internet-based virtual private networks and advances in high-speed telecommunications is central to the global transition to a digital economy," Smith said.
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Separately, EDS signed a 10-year, $200 million contract to
manage a computer data center for Equifax Payment Services.
Equifax Payment Services, a unit of Atlanta-based Equifax Inc., provides
credit card processing, retail check risk management services and electronic
banking solutions.
Approximately 130 Equifax Payment Services employees will come to work for EDS.
"We are pursuing an aggressive growth strategy to expand our business, while constantly improving
the delivery of services to our clients," said Gary Moore, president of E.solutions at EDS. "Equifax wants to concentrate on its
core capabilities and have
access to the best technology anywhere. It's a win-win situation for
everyone."
The newly formed E.solutions unit of EDS brings together 20,000 EDS employees
into a global unit with revenues in 1999 expected to exceed $2 billion.
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