Avago Technologies awards global IT services contract to HP

Semiconductor company Avago Technologies announced the award of a $236 million, ten-year service contract for the provision of global information technology services and operations management to HP. HP will perform IT outsourcing that includes application, desktop, network, print and server management; IT help desk services are also included.

As part of the agreement, HP will apply a scalable environment to Avago’s IT infrastructure, which in turn will reduce Avago’s IT costs. “With HP’s partnership, we designed a strategic outsourcing solution that will enable us to become agile and cost competitive,” said Avago Technologies chief information officer Eugene Lau.

In coming months, HP will implement a new IT applications and infrastructure capability for Avago. Most crucial to this environment will be the applications landscape; HP is slated to partner with Oracle Consulting and Satyam Computer Services Ltd. in implementing and supporting Oracle’s E-Business Suite. HP management and support of the IT infrastructure for Avago follows and will include servers and storage, voice and data networks, hardware procurement and asset management.

Most HP support will come from its global delivery centers in India, Malaysia and Singapore. Avago is the single largest privately held semiconductor firm worldwide and supplies analog, mixed-signal and optoelectronic components and subsystems to manufacturers globally. Last year, the company was acquired by Kohlberg Kravis Roberts and Silver Lake Partners.