EDS wins Fonterra contract extension

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Biggest outsourcing deal signed this year

By Randal Jackson | Wellington | Friday, 1 December, 2006

Fonterra has negotiated a four-year extension to its seven-year global IT infrastructure outsourcing contract with EDS, signed in 2003.

“We’ve reviewed our contract to this point because there is a natural transition in the work undertaken by EDS,” says Fonterra CIO Greg James. “Over the past three years we have achieved a number of significant milestones with EDS, including the transformation programme for our IT systems on to a standardised platform which has been completed in New Zealand and is under way in the rest of the world.

“We are now in a position to change our focus to drive for more innovation, using IT across all areas of the business to achieve greater efficiencies and cost savings.”

The seven-year contract was valued at $580 million. No value has been given for the contract extension to 2015.