Sprint Nextel has revised the $400m IT outsourcing deal signed between Sprint and IBM Corp in 2004, and although the merged telecom carrier has yet to announce the revamped deal, it is bringing a good part of the contract back in house. The new deal was reportedly signed last year.
The 2004 deal covered applications work and other IT services and transferred some 1,000 Sprint employees to IBM. According to a report in InformationWeek, Sprint is now hiring back some of the workers that went to IBM. But IBM will still handle some development and maintenance work for Sprint.
The Sprint CIO, Michael Stout, who worked on the 2004 deal, has left the company; the current Sprint Nextel CIO, Richard LeFave, is from Nextel.
Sprint and IBM are also finalizing amendments for a contract, also signed in 2004 and in the multi-billion dollar range, for call center customer support. That contract involved a transfer of some 4,500 call center positions to IBM.
This month Sprint Nextel has made several other announcements on the outsourcing front. The company last week extended its previous relationship with EDS Corp for services such as midrange hosting, storage, and network support.
Sprint also announced that it had reached a preliminary eight-year billing deal with billing and CRM vendor Amdocs Ltd and will move off a billing system from rival Convergys Corp. Amdocs had been Nextel’s billing partner and Convergys had been Sprint’s before the two companies merged last year.