Fonterra and EDS sign long-term IT agreement

Fonterra and information technology (IT) firm EDS said today they had signed a four-year extension to a seven-year global IT contract covering 40 countries.

Fonterra in 2003 agreed to outsource its IT to EDS in 2003 in a deal valued at US$380 million (NZ$555m). No value has been given for the contract extension.

Fonterra's Greg James said extending the contract to 2015 provided stronger security for both parties and signalled the good progress that had already been made.

Under the deal, Fonterra's systems in New Zealand had gone onto a standardised platform now being replicated in the rest of the world.

The initial contract took effect in March 2004 and involved the transfer of more than 100 Fonterra staff to EDS, predominantly in New Zealand.

EDS New Zealand employs more than 2400 staff and is New Zealand's largest IT outsourcing company.

- NZPA