Vodafone will outsource application development and maintenance services to EDS and IBM.

The deal forms one part of Vodafone’s strategy to offset pressure on its traditional revenue base in mature markets such as the U.K., Germany and Italy. Vodafone will retain full strategic control of the initiative, which focuses on writing code for and maintaining systems such as billing and customer-relationship management.

The group spent around one billion dollars on application development and maintenance last year, and has previously said that there was a potential to reduce costs by 25%-30% within three to five years.

The move will affect 6,300 staff across Vodafone’s global operations — 3,700 of which are external contractors. EDS and IBM were gone through an eight-month selection process, which saw 11 companies bid for the contract.