Harvard Pilgrim Health Care and Perot Systems have extended their IT and business process services relationship through 2021.
Under this new contract, Harvard Pilgrim will realize approximately $150 million of administrative cost savings over the life of the agreement through the consolidation and leveraging of technology, administrative functions and redesign of administrative operations. Perot Systems will operate and support Harvard Pilgrim’s IT infrastructure, business applications, and administrative business operations.
“Over eight years ago, Harvard Pilgrim turned to Perot Systems because of their reputation for being the leading health care IT service provider. Since that time, we have relied on Perot Systems to help us successfully improve our level of customer service and increase operational efficiencies,” said Charles D. Baker, CEO of Harvard Pilgrim. “They have earned our trust and because of their hard work, awarding this contract extension was an easy decision.”
This deal, and the $4.2 billion deal signed earlier this month between Royal Dutch Shell and EDS, AT&T and T-Systems, bring some respite in a scenario when not much large deals are seen being signed. In fact, industry analysts were contemplating such big deals in the second half of the year as clients’ IT budget allocations, especially in the U.S.A. would be delayed.
“Around September 2008, firms would know how much money they have and would be signing big deals,” informed Sudin Apte, Senior Analyst and Country Head (India), Forrester.
