EDS in line for 'largest outsourcing deal of all time'

Procter and Gamble (P&G) is considering outsourcing its computer systems to EDS.

The deal, once completed, could be worth nearly $1bn per year, according to this morning's Wall Street Journal.

The WSJ quoted a source inside the company who claimed P&G is planning to outsource 80 per cent of all of its back end systems, such as staff travel, payroll and accounting to the global IT services giant EDS.

The deal would be the largest outsourcing deal ever. US analysts are predicting the deal would signal a trend among outsourcers to expand their expertise from the traditional network running to more tailored services for each company. Some claim P&G would also be keen to get equity in EDS.

There are two bidders for the massive contract according to WSJ. In addition to EDS, Affiliated Computer Services is also said to be a second contender.

EDS reported $21bn revenue last year alone and the deal is said to signal a bright future for the outsourcing firm.

EDS refused to comment.