FranklinCovey, Salt Lake City, Utah, has signed a $469 million contract for EDS to take over the planner-product company’s technology and customer relationship management.
Under the terms of the agreement, EDS will provide customer interaction center, warehousing and distribution services to support FranklinCovey’s CRM program.
Nearly 400 FranklinCovey warehousing and customer call center employees will transfer to EDS. Plus, FranklinCovey will transition to EDS its Salt Lake City customer care, warehousing, product fulfillment and distribution facilities for an anticipated aggregate cost savings of $50 million, according to a company statement.
This agreement adds to the $117 million strategic-infrastructure pact EDS signed in the first quarter of 2001 to support all of FranklinCovey’s information services operations.
“Outsourcing our technology and customer-relationship management to EDS allows us to focus all of our resources on our core competencies learning and performance solutions,” said Robert A. Whitman, FranklinCovey chairman and CEO, in a statement.
In addition to savings the company expects as a result of the outsourcing, FranklinCovey also plans to free up $15 million in assets and reduce its capital requirements for investing in the divisions it is now outsourcing.
In a separate agreement, FranklinCovey, will take on a $25 million contract to provide learning and performance solutions and tools for EDS.
