EDS lands outsourcing deal with United Airlines

EDS lands outsourcing deal with United Airlines

Electronic Data Systems Corp., which has a large Rancho Cordova office, has signed a 10-year information-technology service contract with United Airlines Inc. to upgrade United’s technology base, reducing its operating costs.

Financial terms of the agreement were not disclosed Tuesday. Under the deal, the Plano, Texas-based technology company will manage more than 36,000 desktop computers for United and provide help-desk services for United employees in about 320 locations worldwide. EDS (NYSE: EDS) also will upgrade all aspects of United’s end-user communications and computing environments in reservations, offices and airports.

In addition, EDS says it will be responsible for related asset management, procurement and third-party provider relationships.

EDS has sold business process outsourcing services, such as passenger reservations, back-office support and cargo booking, for United for the last three years. The company said in a news release that it is the largest provider of global information technology infrastructure services to the airline industry.

United, based in Elk Grove Township, Ill., is the world’s second-largest airline. The company filed for bankruptcy protection in 2002 and is currently undergoing reorganization. UAL Corp. (OTCBB: UALAQ.OB) is the holding company whose primary subsidiary is United Airlines,

EDS has 130,000 employees, 2,700 of whom work in Rancho Cordova. The local operation has clients in manufacturing, financial services, retail, communications and energy, and provides network support services, application, Web and mainframe hosting and processing and 24-hour call-center support.

© 2006 American City Business Journals Inc.

How does this affect Tulsa? The helpdesk is in Tulsa so that means more jobs in Tulsa.

Matt Luria