Memphis awards $50 million outsourcing contract

Memphis awards $50 million outsourcing contract

By Wilson Dizard III

GCN Staff

DEC. 18—The city of Memphis, Tenn., has awarded a $50 million, seven-year information technology outsourcing contract to SCT Corp.

The deal marks the latest in a series of major outsourcing projects by state and local governments.

Memphis chose the Malvern, Penn., company from nine qualified vendors for the project, which will include planning, management, staffing, operation and support of the city's data processing and telecommunications systems.

The two other finalists were Electronic Data Systems Corp. and Affiliated Computer Services Inc. of Dallas. About 50 city employees who now carry out city IT functions will be guaranteed jobs with SCT for at least six months, city sources said.

SCT will accelerate Memphis' transition to electronic government by building a virtual city hall and helping city managers re-engineer business processes. Under the contract, SCT will build systems so residents can pay their property taxes and other city charges online.

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