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.
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.
Hewlett-Packard is in talks to buy Electronic Data Systems, the companies confirmed on Monday.
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.
Hewlett-Packard said Tuesday it will acquire computer services firm EDS for US$25 per share, or US$13.9 billion, in a deal intended to boost HP's services revenue.
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ZDNet correspondent Sumi Das talks with Senior Editor Sam Diaz about the perks and pitfalls of the newly relea… Watch it now
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