NEWBURY, U.K. -- Vodafone has today agreed the terms under which EDS and IBM will manage its application development and maintenance services in a global IT outsourcing deal. The move forms part of Vodafone’s strategic commitment to reduce costs while leveraging its regional scale.

Vodafone’s operating companies in Germany, the UK, Hungary and the Netherlands will work with EDS as their outsourcing partner. Vodafone’s operating companies in Spain, the Czech Republic, Australia, New Zealand, Portugal, Ireland, Greece, and, subject to board approval, Italy, will work with IBM as their outsourcing partner. Each contract is set to run for seven years with Vodafone retaining the right to bring it to a close earlier if required.

“We are confident that our chosen outsourcing partners will not only deliver cost savings, but also an enhanced service,” said Steve Pusey, Chief Technology Officer, for Vodafone Group. “We look forward to a longstanding and productive partnership with both of them.”

Each outsourcing partner will provide application development and maintenance services for key IT systems. Vodafone will retain full strategic control of the initiative, which focuses on writing code for and maintaining systems such as billing and Customer Relationship Management applications.

Vodafone expects that the first wave of Vodafone operating companies will begin to adopt the new arrangements from early 2007, with the others following suit throughout the rest of 2007.

Vodafone Group plc (NYSE: VOD)