NU Online News Service, July 29, 2004, 1:13 p.m. EDT

The Phoenix Companies Inc., Hartford, is hiring Electronic Data Systems Corp., Plano, Texas, to manage most of its computers and networks.[@@]

Phoenix has signed a 7-year agreement that calls for it to pay EDS a total of $122 million, the companies say.

Under the agreement, EDS will be responsible for managing mainframe and desktop computers, data storage systems, printing systems and telecommunications operations at Phoenix. EDS also will be responsible for running the company’s computer help desk, data security operations and disaster recovery operations.

Phoenix employees will continue to design the information systems, develop new applications and develop the company’s Web pages.

EDS will be hiring about 50 Phoenix employees to help it manage the Phoenix information systems.

Phoenix did not say how many people it will be laying off as a result of the shift, but it predicts it will save more than $65 million over the 7-year life of the EDS contract.