Rentworks takes on EDS funding role

EDS New Zealand has entered into a major funding deal with Rentworks. Computerworld understands Rentworks will become an EDS partner and preferred funder for both internal and external business. Neither party is prepared to comment.

EDS New Zealand has entered into a major funding deal with Rentworks.

Computerworld understands Rentworks will become an EDS partner and preferred funder for both internal and external business. Neither party is prepared to comment.

EDS had been talking to a number of potential funders —including IBM Credit — both in New Zealand and overseas. Many millions of dollars are at stake.

It’s expected that the funding will flow through to an EDS-Andersen consortium which is expected to win a major contract with Telecom for a review of IT strategies, including an out-sourcing value model.

The partners refer to it as the Ace project.

Telecom has issued an RFI to several parties and is expected to announce a decision within days. However, the consortium had earlier directly approached Tele-com independently of the RFI.

Telecom has several major IT projects soon to be decided. They include a big facilities management contract, desktop procurement, and a request for proposal for a replacement billing system.

From April 1, all Telecom Systems services will become contestable.

That means internal services can be sourced elsewhere.

Observers suggest the impending change of shareholders — Ameritech is selling its holding, while Bell Atlantic is using its for collateral to raise money to invest in Europe — freed Telecom up to make changes it couldn’t previously have done.

“They added no strategic value and viewed Telecom as a cash cow,” says one.

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