Mobile operator Vodafone Group Plc has agreed contract terms with IBM Global Services and EDS Corp to outsource its application development and maintenance functions.
Vodafone announced IBM and EDS as the winning vendors last month, but has now revealed more details as to how the work will be shared out. EDS will support Vodafone’s CRM and billing systems in Germany, the UK, Hungary, and the Netherlands, while IBM will support operations in Spain, the Czech Republic, Australia, New Zealand, Portugal, Ireland, Greece, and Italy.
Both companies have been awarded seven-year deals, although Vodafone said it has retained the right to terminate the deal at an earlier date if necessary.
The company did not disclose the value of either deal, but said it expects to be able to cut its annual application development and maintenance costs of 560m pounds ($1.07bn) by between 25% and 30% within three to five years.
Vodafone is also looking to cut costs by handing over control of data centers and network supply chain management to third-party vendors. In June the company announced a net loss of 21.8bn pounds ($42bn), the largest-ever loss in British corporate history.