EDS Renews Services Contracts, Hires Top ConsultantsEDS Renews Services Contracts, Hires Top Consultants

EDS finally got some good news. The IT services firm, hit by a number of recent setbacks, said Tuesday that forest-products company Weyerhaeuser Corp. is broadening its existing IT services contract.

Under the deal, EDS will run IT operations on behalf of Willamette Industries, which was recently acquired by Weyerhaeuser. The services include network, desktop, server, and mainframe management. An unspecified number of Willamette IT workers will join EDS as part of the arrangement, financial terms of which weren't disclosed. The contract represents an expansion and broadening of a services deal that Willamette signed with EDS in December 2000.

EDS also says Australian power utility Integral Energy has signed a two-year renewal of its outsourcing contract with the firm.

Meanwhile, EDS says it has hired 11 top industry experts to bolster its presence in some key vertical markets. As part of the hiring, EDS named Rob Baldock, a former Andersen Consulting partner, to the post of global leader, financial services industries. It also named former Andersen and IBM exec Mark Roman to the post of global leader, health-care industry.

EDS has been under the gun lately. Procter & Gamble Co. recently backed away from a major outsourcing deal because of concerns about EDS's finances. And on Monday, EDS cut expectations for its fourth quarter and full-year earnings by 5 cents per share as a result of its holding some United Airlines' debt instruments. United filed for bankruptcy Monday. Last week, Paul Chiapparone, EDS's executive VP of operations, said he will retire in January.