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For Sourcing & Vendor Management Professionals

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May 16, 2008

Shell Signs Megadeals With AT&T, T-Systems, And EDS For Global Network And IT Services

The Three Providers Will Be Shell's Global Strategic IT Suppliers

by Brownlee Thomas, Ph.D.

with Christine Ferrusi Ross, Sean Galvin

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Executive Summary

On March 31, 2008, Royal Dutch Shell (Shell) announced the signing of three separate agreements with AT&T, T-Systems, and EDS for global IT infrastructure outsourcing and managed network services. The three megadeals have a combined value of approximately $4.2 billion. As of July 1, AT&T will be responsible for managing Shell's global network infrastructure and telecommunications services. Shell will outsource hosting and storage to T-Systems, including transferring five major data centers to that provider, while EDS will deliver worldwide end user computing services and also will be responsible for the end-to-end services integration of the cross-bundled services provided by the three suppliers. Shell will retain separate commercial relationships with each supplier, and it will also continue to manage a number of oil and gas industry-specific competitive IT systems in-house.

This is an excerpt

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