EDS to share TelstraClear building

By PETER GRIFFIN

EDS may be entering the lair of its biggest customer's arch-rival, but there will be no mingling in the cafeteria for EDS and TelstraClear staff at Smales Farm.

The IT services giant will shift more than 300 staff and its network infrastructure to the North Shore building already occupied by TelstraClear, closing three inner-city offices.

EDS said the shift was a result of a Government-subsidised project to build a call centre and application centre that is expected to create 360 jobs and generate $200 million to $280 million in foreign exchange earnings over eight years.

Last month the Government chipped in $1.5 million to finance the project. EDS is also investing $18 million to get it off the ground. Some of the new staff members involved in the project will be based on the North Shore.

EDS spokeswoman Joanna Clarke said Telecom, its largest customer, had been consulted about the move and had no qualms about its IT provider living next door to TelstraClear.

But an industry source said Telecom initially disapproved of the plan, and reluctantly signed it off after being assured that independence from TelstraClear would be maintained.

EDS staff would use separate facilities, but get to traverse the complex on complementary bicycles - just like their TelstraClear neighbours.

A spokesman for TelstraClear, Matthew Bolland, said a new security system would be implemented with the arrival of EDS.

"We don't really see EDS as a Telecom organisation. And we're happy to see the building sub-leased as it will recover some cost for us."

EDS has around 2300 staff scattered around the country, many of them in Wellington.

North Shore City Mayor George Wood said the influx of EDS workers would boost the region's economy. The council has had an emphasis on attracting IT companies to the North Shore.