A number of large network-services deals ensured that the global outsourcing market remained buoyant throughout May.
The biggest deal was awarded by the U.S. Department of Homeland Security to two providers: Verizon Business, the network-services arm of communications giant Verizon, and AT&T’s Government Solutions operation. Verizon’s share of the 10-year deal, known as OneNet, was valued at $679 million, while AT&T will receive approximately $292 million for its work on the deal. The two companies are tasked with combining separate WANs from across the DHS into a single IP network, which will also provide specialist emergency communication services for use in disaster scenarios.
In the U.K., Cable & Wireless secured a six-year agreement worth some $592 million with the Aviva insurance company. Under the terms of the contract, Cable & Wireless will provide 72 separate services, including voice telephony, data, LAN and WAN management to Aviva’s 35,000 staff. This networkservices company has been the preferred provider to Aviva for the last 12 years.
The public sector continues to see a large amount of outsourcing activity with the U.S. defense industry, in particular, generating a number of significant deals. Network and messaging services provider Telos, for example, was awarded a $582 million contract by the Department of Defense.