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EDS extends contracts worth $445 million

Electronic Data Systems said Friday it has signed $445 million in new business by extending IT outsourcing contracts with three customers. Under a contract with the State of Arkansas, EDS will help the state bring its Medicaid management information system into compliance with federal medical privacy laws. The company extended a contract with BellSouth Technology Group that it signed in 1997 and renewed for three years a contract with Main Street Direct, a direct marketing company. IT outsourcing, a lucrative and growing market in the largely dismal technology industry, often involves the outsourcing of large corporate data centers, IT help desks and application development to a third party service company, such as EDS or IBM. Companies purport to save millions of dollars by handing off IT functions to companies that specialize in such tasks.

Electronic Data Systems said Friday it has signed $445 million in new business by extending IT outsourcing contracts with three customers. Under a contract with the State of Arkansas, EDS will help the state bring its Medicaid management information system into compliance with federal medical privacy laws. The company extended a contract with BellSouth Technology Group that it signed in 1997 and renewed for three years a contract with Main Street Direct, a direct marketing company.

IT outsourcing, a lucrative and growing market in the largely dismal technology industry, often involves the outsourcing of large corporate data centers, IT help desks and application development to a third party service company, such as EDS or IBM. Companies purport to save millions of dollars by handing off IT functions to companies that specialize in such tasks.