HP and DIRECTV Extend IT Outsourcing Contract for Seven Years, $500 Million
PALO ALTO, Calif., Sept. 19, 2006 - HP and DIRECTV, Inc. (NYSE:DTV) today announced a seven-year extension of their 12-year relationship with a new information technology outsourcing contract valued at approximately $500 million.
HP will continue to provide 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 has been a strategic partner for DIRECTV since we were a start-up company,” said Dennis Fleming, vice president, Operations, 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.”
Specifically, 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.
“It’s been an exciting partnership with DIRECTV as they’ve grown to become the nation’s leading satellite television service provider supporting more than 15 million customers,” said John Evers, vice president and general manager, Managed Services – Americas, HP. “We look forward to working side-by-side with DIRECTV to help ensure their IT systems are continuously able to support new initiatives and services as they grow their business even more.”
About DIRECTV, Inc.
DIRECTV, Inc., the nation’s leading satellite television service provider, presents the finest television experience available to more than 15.5 million customers through exclusive content, industry-leading customer service (which has surpassed cable for six years running) and superior technologies. Each day, DIRECTV subscribers enjoy over 250 channels of 100 percent digital picture and sound; exclusive programming and the most comprehensive collection of sports programming available anywhere including NFL SUNDAY TICKET™ and MLB EXTRA INNINGS™. DIRECTV (NYSE:DTV) also leads the digital television technology revolution with exclusives such as NFL SUNDAY TICKET SuperFan™, US Open Interactive and YES Network Interactive, and will soon have the capacity to offer over 150 channels in HD. DIRECTV is approximately 39 percent owned by News Corporation. For the most up-to-date information on the company, please visit www.directv.com.
HP is a technology solutions provider to consumers, businesses and institutions globally. The company’s offerings span IT infrastructure, global services, business and home computing, and imaging and printing. For the four fiscal quarters ended July 31, 2006, HP revenue totaled $90.0 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at http://www.hp.com.
This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of HP and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to statements of the plans, strategies and objectives of management for future operations; any statements concerning expected development, performance or market share relating to products and services; anticipated operational and financial results; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the achievement of expected results and other risks that are described from time to time in HP’s Securities and Exchange Commission reports, including but not limited to the risks described in HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2006, and other reports filed after HP’s Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2005. HP assumes no obligation and does not intend to update these forward-looking statements.
© 2006 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.
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