Yet another megabuck outsourcing contract came and went last week as EDS comfortably beat out a surprisingly thin field of competitors to secure a five-year, $45 million deal with Caltex Australia.
EDS, which has been in close contact with Caltex for the last six months, was only really troubled by Hewlett-Packard which was eyeing Caltex's hardware infrastructure and SAP development, according to Tony Henshaw, EDS' deputy managing director.
The Caltex outsourcing contract will be split into two phases: a three-year $36 million deal to manage Caltex's desktops, networks and servers; and a five-year $9 million contract to provide operational equipment, including hardware processing capacity and operational support services for Caltex Starcard - Caltex Australia's integrated fuel card system.
However, Caltex didn't quite throw the baby out with the bath water. The organisation opted to retain its SAP application development expertise with an eye to expanding its core business competencies.
When asked if EDS would be taking on any Caltex staff, Henshaw said: "Only a small number of infrastructure-related staff will come across" while Caltex will retain the majority of its SAP development team.
Henshaw was somewhat surprised at the lack of competition shown by the likes of IBM GSA and CSC for the Caltex bid, saying that the organisation "made it very clear it wanted to substantially reduce its IT costs from a year-on-year perspective".
Unfortunately for channel partners, the pickings from EDS' latest conquest are almost non-existent. Henshaw said only a handful of minor subcontractors will play a part in the project.
EDS is working in conjunction with Financial Automation on the Caltex Starcard project and will provide services from its Systems Management Centre in Sydney.