New Zealand Dairy Company Extends EDS DealNew Zealand Dairy Company Extends EDS Deal

Outsourcer Electronic Data Systems says it has inked a four-year extension on its contract to provide IT services and support to New Zealand's Fonterra Co-operative Group, the world's largest exporter of dairy products.

The pact extends a seven-year, $380 million contract that Fonterra originally signed in December 2003 with EDS to 2014. Financial terms of the extension weren't released.

Fonterra officials say outsourcing to EDS has allowed the company to modernize and gain efficiencies in its IT systems by moving to standardized platforms and tapping compute power on a pay-as-you-go pricing system. "We are now in a position to change our focus and drive for more innovation," said Fonterra CIO Greg James, in a statement.

The contract covers Fonterra operations in 40 countries and encompasses a range of IT functions, including support and maintenance for midrange servers, laptops, and desktops. As part of the deal, more than 100 Fonterra technology staffers have been transferred to EDS.