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DirecTV Renews HP IT Contract

9/19/2006 09:17:00 AM Eastern

Palo Alto, Calif. – DirecTV signed a seven-year extension on its 12-year information technology outsourcing contract with HP, the companies said.

The new contract, which was valued at approximately $500 million, calls for HP to continue providing IT operations and application testing services designed to support DirecTV's ability to roll out new promotions and new services, acquire new customers and ensure they receive timely, accurate billing for the satellite television services they use.

HP will continue to provide support for DirecTV's billing and non-billing (customer relationship management) environments, including system integration and management, local area network (LAN) management, data center operations, release management, database support, application support, change management, capacity planning, disaster recovery and support for new technologies.

The deal is expected to result in $100 million in savings – a 20 percent reduction in cost – for DirecTV.

“HP's technology, managed services and governance model will enable our IT to be agile enough to meet our business goals as we look to further grow our business and provide our customers with expanded satellite television programming and digital content,” Dennis Fleming, DirecTV operations VP.

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