Report: Amdocs, Verizon Negotiating Outsourcing Deal Staff

Updated · Jun 13, 2003

Amdocs , a provider of billing, customer relationship management and directory services, is reportedly negotiating a lucrative contract with Verizon .

The proposed five-year pact is worth around $700 million and could rise to $1 billion, according to U.S. telecom industry sources cited by Globes, an Israeli business publication (Amdocs is based in Chesterfield, Mo., but has a strong presence in Israel.)

The service would be for both Verizon's landline and wireless operations, the media outlet said.

An Amdocs spokesman said the company won't comment on rumors, but said there is an existing relationship with Verizon. A spokesman for New York-based Verizon declined comment.

Verizon wouldn't be the first regional carrier to try and save money through outsourcing. In January, SBC Communications signed a
seven-year agreement with Amdocs worth “hundreds of millions of dollars.”

For SBC, which serves 13 Midwest states, Amdocs will work to improve the efficiency of its diverse IT operations.

Amdocs will provide day-to-day IT operations, applications development and maintenance, help-desk services, end-user support, implementation services, procurement, facilities and data center services.

As with many large outsourcing deals, some of SBC's IT workers will become Amdocs employees. Besides allowing them to concentrate on their core business, the transfer of salaries and benefits is another important reason companies choose to outsource.

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