EDS, Sabre extend IT services deal

EDS and Sabre Holdings extended and renegotiated a long running information technology services deal to 2014.

Under the extension, EDS said Wednesday that it will garner new revenue of about $630 million. The new agreement requires that EDS support "Sabre's continued business transformation, including its move to open systems." Sabre, which owns Travelocity.com, will use EDS' IT frameworks and processes in the move.

EDS said the Sabre pact "represents a transformation of our relationship with Sabre." In a nutshell, EDS will still run Sabre's IT infrastructure, but also provide consulting services , said EDS spokeswoman Blake Hull. EDS manages Sabre's IT infrastructure, including data center management, desktop support, application hosting, network management and data assurance.

Sabre began working with EDS in 2001 in a 10-year contract valued at $2.2 billion. The extension announced Wednesday will bring the total contract value to $2.83 billion over 13 years. Under the original deal, Sabre sold its infrastructure outsourcing business and technology infrastructure to EDS for $661 million. Sabre used to manage systems and software for the likes of US Airways, American and other airlines and travel services. Those contracts and 4,000 employees were transferred to EDS. The move allowed Sabre to focus on its travel business.