ACS signs outsourcing deal with McDonald's

FRAMINGHAM (04/01/2004) - Affiliated Computer Services Inc. has inked a seven-year, US$219 million deal to provide IT services to McDonald's Corp., according to a filing with the U.S. Securities and Exchange Commission.

Under the terms of the agreement, Dallas-based ACS will provide McDonald's with IT infrastructure services, including mainframe, enterprise servers, end-user computing and help desk support for more than 6,000 desktops.

The services will support Oak Brook, Il.-based McDonald's IT infrastructure needs for North America and will be delivered from an ACS data center in Eagan, Minn.

In addition, ACS said it will establish a new, centralized IT support office in the Chicago area. An ACS spokeswoman said 90 percent of McDonald's IT workers will be transitioning to ACS, although she didn't know the exact number of workers affected.

"Our business is all about focus and discipline, and it requires relentless attention on the details and efficiency," Dave Weick, McDonald's CIO, said in a statement. "We find in ACS a company that has a superior track record managing complex, high-volume processes, a company that is service-oriented and flexible and nimble in working with clients."

Weick said the ACS deal will allow McDonald's to save money while providing continuing access to new technology.

Chris Millington, chief technology officer at McDonald's, said the company selected ACS because of its focus on people, flexibility and a willingness to assume risk in supporting McDonald's IT processes.

"This contract represents a big win for ACS ... ," Lynn Blodgett, group president of ACS Commercial Solutions, said in the statement. "We are able to deliver end-to-end capabilities in IT, cost savings across all towers of service, retention of current McDonald's employees, the ability to add or reduce capacity when needed and an assortment of improved efficiencies."

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