EDS and FranklinCovey have announced a major IT pact – a 15-year, $469 million contract to EDS for CRM and IT services. In turn, EDS has awarded FranklinCovey a $25 million contract for learning and performance solutions.
EDS will provide customer interaction center, warehousing and distribution services to support FranklinCovey’s CRM program. This contract adds to an earlier $117 million agreement to support information services operations.
As part of the agreement, nearly 400 FranklinCovey warehousing and customer care call center employees will transfer to EDS. In addition, FranklinCovey will move its Salt Lake City customer care, warehousing, product fulfillment and distribution facilities to EDS for an anticipated aggregate cost savings of $50 million.
EDS intends to leverage FranklinCovey’s expertise by providing FranklinCovey solutions and tools to employees who move to EDS from client companies.
This joint go-to-market strategy will provide new ways for clients to access FranklinCovey’s learning and performance intellectual property, and will increase accessibility to this capital through EDS’ Digital Learning technology.
According to IDC, corporate e-learning will grow to $14.5 billion in 2004, up from $2.2 billion in 2000.
Robert A. Whitman, FranklinCovey chairman and CEO, said: “Outsourcing our technology and customer relationship management to EDS allows us to focus on our core competencies – learning and performance solutions. We expect to save more than $50 million by EDS maintaining our information services, warehousing and customer interaction centers. We also free up $15 million in assets and reduce our capital requirements for investing in those areas.
FranklinCovey clients include 80 of the Fortune 100, more than three-quarters of the Fortune 500, thousands of small and mid-sized businesses, as well as numerous government entities. More than 3,500 FranklinCovey associates provide professional services and products in 44 offices in 38 countries.
EDS, with its management consulting subsidiary, A.T. Kearney, serves the world’s leading companies and governments in 55 countries. EDS reported revenues of $19.2 billion in 2000. The company’s stock is traded on the New York Stock Exchange and the London Stock Exchange.