California State Automobile Association Inter-Insurance Bureau Signs Long-Term Contract Extension With EDS to Manage Core Business Applications
EDS to Help CSAA Control Costs, Increase Competitiveness Under Flexible Technology Agreement
PLANO, Texas and SAN FRANCISCO, March 27 -- EDS and the California State Automobile Association Inter-Insurance Bureau (CSAA) today announced they have extended their existing relationship by more than five years to 2013 with a new contract for a variety of information technology (IT) outsourcing and applications services.
EDS will manage CSAA's core business applications including its insurance, travel and membership systems. In addition to applications services, EDS will host and manage CSAA's mainframe computers, local-area network, and midrange servers in EDS' Sacramento Service Management Center, and provide desktop management services, including hardware, software and support to more than 8,500 desktops in CSAA's more than 80 facilities in California, Nevada and Utah.
This agreement will enhance CSAA's ability to achieve its business goals to reduce expenses while building a foundation to provide additional value to members and strengthen brand and membership loyalty.
The 103-year-old organization serving Northern California, Nevada and Utah will look to EDS to increase the value it receives from technology by continuing to manage its technology environment.
"The flexibility and cost predictability with our EDS relationship helps us achieve the aggressive cost containment goals that allow us to compete more effectively," said James R. Pouliot, President and CEO of CSAA. "We have enjoyed more than 100 years of growth, and are planning our strategy for the next phase. Above all, we are committed to providing unparalleled member services and EDS will continue to help us implement the technology that enables us to deliver them."
Flexibility and Business Value
EDS will further enable CSAA to become an agile enterprise, using the "On Demand" services model, by giving CSAA the ability to rapidly transform its business to take advantage of changing market conditions. This flexible and scalable solution provides ready-to-go capacity as demand rises and falls, removing the significant upfront capital investment that would otherwise be required. The agreement is structured to provide CSAA this unique flexibility to choose which services it needs and better manage IT consumption and more efficiently predict the costs related to these services.
"EDS helps clients become agile enterprises that can transform the way they do business on the fly to better meet the increasing demands of their customers and shareholders to produce value," said Darl Davidson, president, U.S. Western Region for EDS Operations Solutions. "We have worked closely with our colleagues at CSAA to craft this extended agreement with the flexibility required to help them achieve their business objectives."
"We have earned this renewal from CSAA through our excellent client service and a demonstrated commitment to the insurance and financial services industry," said EDS Financial Services President Coley Clark. "EDS will continue to help CSAA reach a more competitive cost structure and further increase the return on its IT investment."
About EDS
EDS, the leading global services company, provides strategy, implementation, business transformation and operational solutions for clients managing the business and technology complexities of the digital economy. EDS brings together the world's best technologies to address critical client business imperatives. It helps clients eliminate boundaries, collaborate in new ways, establish their customers' trust and continuously seek improvement. EDS, with its management consulting subsidiary, A.T. Kearney, serves the world's leading companies and governments in 60 countries. EDS reported revenues of $21.5 billion in 2002. The company's stock is traded on the New York Stock Exchange and the London Stock Exchange. Learn more at www.eds.com .
The statements in this news release that are not historical statements, including statements regarding the amount of new contract values, are forward- looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond EDS' control, that could cause actual results to differ materially from such statements. For information concerning these risks and uncertainties, see EDS' most recent Form 10-K. EDS disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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