Chevron Press Release - Chevron Will Outsource Selected IT Services To EDS, GTE, Sprint
SAN FRANCISCO, Dec. 22, 1997 -- Chevron Information Technology Company (CITC) and EDS today announced that EDS, GTE, and SPRINT have been chosen to enter into contractual negotiations to provide selected information technology services to Chevron Corporation. Contracted services will include mainframe, voice and data network services, and information technology support.
EDS, lead company in the group, will now begin definitive negotiations with Chevron on the contract, valued at approximately $450 million over a five-year period. The transition of services is expected to begin in the second quarter of 1998, and to be concluded by the end of 1998. EDS and GTE will provide support services while SPRINT will be the carrier for voice and data transmissions.
"This combination of companies, among a number of competing groups, offered the best overall solutions and the greatest focus on Chevron's information technology customers," said Dave Clementz, president of CITC.
"This move is consistent with our plans to focus on Chevron's core business," said Don Paul, vice president for technology at Chevron. "By partnering with the best service providers, we can lower our costs, increase service levels, and provide better career opportunities for many of our information technology professionals."
"EDS is excited to have access to the quality IT employees of Chevron," said Stuart Reeves, executive vice president of EDS. "We look forward to providing enhanced career opportunities to these employees. Their technical and industry knowledge will complement EDS' strength in the energy industry, as well as in our infrastructure and the Bay Area in general."
Sheila Taylor, Chevron's CITC General Manager for Shared Services, said, "An important part of this process has been our discussions with EDS about the high value we place on Chevron employees who have been providing information technology services. We are very pleased that EDS recognized that value."
Chevron announced in February 1997 that during 1998, selected CITC operations would be streamlined, outsourced, or discontinued. Today's announcement is part of that process, and will affect up to 400 employees.
Taylor added, "Today's announcement is in keeping with CITC's new strategic direction announced in February. In addition to outsourcing selected information technology services," she said, "CITC will focus on providing a common global network computing environment for the corporation, and on developing custom information technology services to yield a competitive advantage for Chevron's core oil and gas operations."
EDS is a leader in the global information services industry. EDS, which serves customers in 42 countries, reported revenues of $14.4 billion in 1996.
Headquartered in San Francisco, Chevron is a Fortune 20 company and one of the world's largest oil companies.
Updated: December 1997