Cap Gemini tops EDS for $5.2 billion U.K. outsourcing deal

The Cap Gemini Ernst & Young Group has taken a major U.K. outsourcing contract away from Electronic Data Systems Corp.

The Paris-based company was picked over incumbent EDS to provide the technology services for the U.K. Inland Revenue, the British version of the U.S. Internal Revenue Service. EDS has held the outsourcing contract since 1994.

CGEY takes over the 10-year, $5.2 billion on July 1, after a six-month transition period. The contract also has an eight-year option period.

Fujitsu Services will be CGEY's main partner in delivering the contract, and will predominantly manage data center services. British Telecom will be the subcontractor providing wide area network and voice support services.

CGEY beat a team led by EDS of Plano, Texas, and its main partner Accenture Ltd. of Hamilton, Bermuda.

About 2,250 employees are expected to join CGEY from EDS and Accenture. Another 900 will join Fujitsu.

"The employees transferring to us are central to the Inland Revenue's ability to continue delivering a premier service," said Martin Cook, CGEY U.K. vice president, who will be the chief executive officer accountable for delivery of the contract.