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January 4, 2004

Big services vendors announce late 2003 deals

IBM Global Services, EDS Corp and Computer Sciences Corp closed 2003 by announcing a string of new contract awards.

By CBR Staff Writer

IBM Global Services, the world’s largest IT services provider, secured a $41m deal with BankBoston to manage the bank’s entire Latin American IT infrastructure. The contract covers BankBoston’s operations in Argentina, Brazil, Columbia, Chile, Mexico, Peru and Uruguay. IBM will transfer 430 servers holding 11 terabytes of storage from BankBoston facilities to its IT campus in Martinez near Buenos Aires.

IBM also announced a new 10-year deal with US retail group Target, to manage the company’s mainframe IT infrastructure. The agreement establishes a variable, on-demand pricing model under which Target will pay only for the IT services it uses.

EDS Corp rounded up a tough year by announcing two contracts in the beverage-manufacturing sector. The company won a seven-year contract renewal with Allied Domecq Spirits and Wine to provide desktop support, help desk services and infrastructure management across all of its European operations.

The services company also signed a five-year add-on agreement with Latin American bottling company Coca-Cola FEMSA to host midrange servers for operations in Argentina, Brazil, Colombia, Costa Rica, Guatemala, Mexico, Nicaragua, Panama and Venezuela.

Computer Sciences Corp enjoyed strong growth in its US government sector business in 2003, and highlighted this by announcing that it signed 70 previously unannounced contracts and subcontracts valued at approximately $405m during the third quarter of CSC’s fiscal year, which ends on January 2, 2004.

The company’s agreements range in value from $15,000 to $60m and vary in length from one month to five years. US civil agencies accounted for 12 awards with a total value of $92m, and Department of Defense agencies accounted for 58 awards with a total value of $313m.

This article is based on material originally produced by ComputerWire.

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