Memphis outsources city's IT

Memphis is close to finalizing a $42 million deal that will outsource its

entire information systems division to SCT Corp., a technology solutions

provider, for the next seven years.

Mike Daniels, president of SCT's Global Government Solutions, said the

company would provide "wall-to-wall full information technology outsourcing."

That means the company is taking over all computer and telecommunications

responsibilities previously managed by the city's information systems division.

He said SCT will provide technical expertise, help maintain and upgrade

equipment, manage costs and transition the 40-or-so city information systems

employees who will become SCT employees. He cannot disclose the contract's

details until it is completed, possibly in mid-December.

The city chose SCT following a 10-month search. A publicly-traded company

based in Malvern, Pa., SCT outbid the likes of Electronic Data Systems Corp.

and Affiliated Computer Services Inc.

In its request for qualifications, Memphis — the country's 18th largest

city with a metropolitan area population of more than one million — said

outsourcing its information systems division would help improve city services

and reduce costs. Abe Kani, the city's chief information officer, could

not be reached for comment.

SCT also provides similar IT outsourcing functions for Anaheim, Calif.,

Indianapolis, Evansville, Ind., and Greenville, S.C.

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