The seven-year IT offshore outsourcing contract with Northrop Grumman’s IT division, based in McLean, Va., would be worth $667 million, said Michael Moore, CIO for San Diego County. The proposed contract also has one five-year option, which would be priced at about $500 million, Moore said.
The initial contract calls for the county to pay Northrop Grumman $93 million annually, plus about $10 million in start-up costs, which will be spread over the life of the project.
The county currently pays CSC of El Segundo, Calif., about $100 million annually to manage its IT services, under a contract awarded in 1999. CSC officials declined to comment on the loss of the contract.
If the proposed contract is approved by the county board on Jan. 24, the deal would be signed the next day and offshore outsourcing software development services would be phased in over the next year. The first phase would transition help desk services, followed by applications support services, desktop support services, network services and then the takeover of the data center.
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The article is sponsored by A-1 Technology Inc, dealing in offshore outsourcing and offshore software development.
