SCT Wins $50 Million Outsourcing Deal in Memphis

Systems and Computer Technology Corp. announced Dec. 18 that it has won a seven and one-half year, $50 million outsourcing contract for information technology and telecommunications services from the city of Memphis, Tenn.


Under the contract, SCT of Malvern, Pa., will handle all of Memphis' data processing and telecommunications services, application software development and maintenance, help-desk and system security and business process re-engineering, according to company officials.


SCT also will assist Memphis with delivering electronic services to business and citizens, and it will manage several subcontractors that deliver IT services to the city.

Subcontractors include Cook Systems International Inc., Memphis, Netgov.com Inc., Chicago, and Verizon Communications Inc., New York, said an SCT spokesman.


IT staff on the city's payroll will become SCT employees, said the company.

"This contract is an important milestone for SCT and Memphis," said Mike Daniels, president of SCT global government solutions. "It's an example of a large, progressive city utilizing the value of outsourcing to deliver the foundation-building infrastructure and services necessary to deliver digital government."


The outsourcing partnership is expected to produce long-term cost savings by allowing the city government to run more efficiently, said Mayor Willie Herenton.


"For the first time, we are poised to have the type of professional information management that I have been striving for since I became mayor in 1992," he said.


Memphis has had a difficult time attracting and retaining IT professionals with the skills necessary to provide high-quality information services, said city officials.

SCT competed against Affiliated Computer Services Inc. of Dallas, and Electronic Data Systems Corp. of Plano, Texas, during a 10-month procurement cycle.


With a population exceeding 1 million, Memphis is the one of the 20 largest cities in the nation.