The Australian division of Texan IT services giant EDS has sent its major local clients letters assuring them that its US$13.9 billion acquisition by Hewlett-Packard wouldn't result in a drop in service levels.
EDS has won a five-year, AU$25 million IT outsourcing deal with recruitment firm Chandler Macleod to provide back-end processing services that will support its Defence recruitment drive in the coming years.
Technology giant Hewlett-Packard said overnight that it would chop about 24,600 jobs, or 7.5 per cent of its total workforce following its US$13.9 billion acquisition of Texan IT services firm Electronic Data Systems.
HP and EDS customers should look at renegotiating existing contracts to push for price reductions and improved services following the US$13.9bn deal between the two outsourcing giants.
The Australian Tax Office is preparing to put the last and largest of its IT outsourcing contracts centralised computing up for grabs, worth around AU$160 million per year. This is EDS's last chance to retain work with the ATO and possibly its first bid since its proposed acquisition by HP.
Business process outsourcing (BPO) is on the rise, with traditional IT services companies moving into this space. ZDNet Australia looks at what is happening in this emerging market.
Outsourcing companies in Australia are poised to slash positions held by re-employed in-house information technology (IT) personnel as the embargoes on cuts expire, one of Australia's leading executive search consultants warned today.
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