Press Releases

Matáv and EDS sign major outsourcing agreement for IT systems management

Budapest, May 23, 2000

MATÁV and EDS announced today that they have finalised an information technology (IT) outsourcing agreement valued at more than USD 120 million over the life of the contract. The 7-year agreement is the largest of its kind in the IT and telecommunication industries in Central Eastern Europe. With this strategic move Hungary's leading telecommunications company wants to pursue future business goals by focusing on its core competence. To support this objective EDS will deliver the necessary service excellence. As part of the agreement almost 300 MATÁV IT professionals will transfer to EDS to begin new career opportunities at one of the world's leading IT service providers.

MATÁV chose EDS over several prominent global competitors to manage and operate Matáv's company-wide information systems. The services provided by EDS include a user helpdesk, server and desktop management and field support services. This key decision is another important step MATÁV has taken in preparation for full liberalization of the Hungarian telecommunications market and EDS is prepared to help the company to maintain their unbroken growth and leading role as a telecommunications provider.

"Since 1998 MATÁV has been making efforts to outsource its non-strategic IT systems management to external partners. This outsourcing is part of the modernization process which - in the area of logistics - started with outsourcing the real estate management. MATÁV intends to build a partnership with EDS that helps both companies achieve their business objectives." said Elek Straub, MATÁV Chairman & CEO.

"By signing this agreement EDS and MATÁV leapfrog the outsourcing market in CEE. As number one in IT services to the communications industry, with more than 450 telecommunications clients in 27 countries, EDS contributes complementary expertise." said John Meyer, Information Solutions President for Europe & Africa.

MATÁV is the principal provider of telecommunications services in Hungary and holds the national concession for national and international long distance telephony. The company currently operates 2.9 million telephone main lines. MATÁV provides a broad range of services including telephony, data transmission, value-added services, and is Hungary's largest cellular provider. In November 1997, MATÁV completed a national and global IPO. MATÁV reported revenues of $ 1.5 billion in 1999. The company's stock is traded on the Budapest Stock Exchange and New York Stock Exchange.

EDS is a recognized global leader in providing E-business and information technology services to 9,000 business and government clients in about 50 countries around the world. Having founded the IT services industry more than 35 years ago, EDS delivers high value management consulting, electronic business solutions, business process management, and systems and technology expertise to help clients simplify complexity and achieve superior value in the digital economy. The company brings deep industry practice knowledge to solve challenges in a wide variety of industries, including communications, energy and chemicals, financial services, government, healthcare, products and retailing, and travel and transportation. EDS reported revenues of $18.5 billion in 1999. The company's stock is traded on the New York Stock Exchange (NYSE:EDS) and the London Stock Exchange.