Memphis Selects SCT for IT Outsourcing Services

Memphis Selects SCT for IT Outsourcing Services

By William Welsh, Staff Writer


NOV. 29 ? The city of Memphis, Tenn., has selected Systems and Computer Technology Corp. of Malvern, Pa., to handle its information services contract.


Memphis and SCT are now negotiating the terms of the contract, which is expected to be finalized and signed in December, said Abe Kani, the city's chief information officer of information systems.


At this stage, the seven-year contract is valued at $42.1 million, he said.


SCT will assume responsibility for computer and technology work previously managed by the more than 50 employees who are employed either full-time or on a contract basis for the city's information services division, Kani said.


These employees will have the opportunity to become SCT employees during the transition, said Mike Daniels, president of SCT Global Government Solutions.


SCT will upgrade the city's technology infrastructure, smooth the transition to digital government, and improve customer support, said Kani.


Major systems integrators that competed against SCT for the contract were Affiliated Computer Services Inc., Dallas, and Electronic Data Systems Corp., Plano, Texas.


Meanwhile, SCT has announced plans to appeal a decision rendered against it in Broward County, Fla.


A U.S. District Court judge has entered a judgment against the company in the amount of $3.2 million in connection with the software implementation for the county's judicial system while SCT was a subcontractor for Unisys Corp. of Blue Bell, Pa.


SCT's counterclaims for about $3.1 million for software licenses, services rendered and expenses incurred were denied, said the company.


To cover its expected losses resulting from this matter, SCT has taken an additional pretax charge to earnings of $5.8 million in the third quarter. The amount, and amounts previously accrued, should be adequate to cover the loss if the appellate court affirms the lower court's decision.


Insurance claims may be available to cover a portion of the damage, SCT said.

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