ACS Awarded $120 Million Human Resources Outsourcing Contract With Delta Air Lines

DALLAS, Feb. 14 /PRNewswire-FirstCall/ — Affiliated Computer Services, Inc., (NYSE: ACS – News), a premier provider of business process and information technology outsourcing solutions, announced today that it has been awarded a human resources (HR) business process outsourcing (BPO) contract with Delta Air Lines, the United States’ second-largest airline. The seven-year agreement is valued at $120 million.

Under the terms of the new HR outsourcing agreement, ACS will provide a broad range of human resource functions for Delta, including compensation and benefits administration, relocation services, recruiting, learning, payroll, HR Information Services, and employee call center services for Delta’s North American employees and retirees. ACS has an existing relationship with Delta providing paper-based passenger revenue accounting services under a separate contract.

“ACS’ outstanding reputation among its current HR BPO clients, the company’s service-oriented culture, convincing economic value proposition, and enthusiastic approach to our business were key factors in our decision to partner with ACS,” said Beth Johnston, vice president, human resources for Delta Air Lines. “The extensive BPO experience and the leading-edge technology solutions they offer will assist Delta in achieving its Transformation Plan to reduce costs and improve service.”

ACS will enable Delta to change the way employee and retiree services are delivered, while also increasing service levels at reduced costs. This agreement will reduce Delta’s HR and Payroll services costs by more than 25 percent over the life of the contract and allows Delta to forego significant capital investment. ACS’ HR solutions will be key to Delta as it transforms to meet the challenges of today’s rapidly changing airline business.

“By simplifying administrative processes, enhancing technology, and reducing the costs for HR services, ACS will help Delta focus on providing even better service to its customers,” said Lynn Blodgett, group president of ACS Commercial Solutions. “We look forward to transforming the way that Delta meets the needs of its employees, and in the process helping Delta build further value for its customers, and remain a distinguished leader and strong competitor in the airline business.”

ACS’ Global HR Solutions unit is redefining human resource operations worldwide by providing large corporations with a compelling HR outsourcing alternative that produces enhanced efficiencies, improved quality, and lower costs for HR functions. The global business entity was launched at the end of 2002 and is receiving high acclaim along with its rapidly growing list of large-scale clients.

EquaTerra served in an advisory role in assisting Delta with its outsourcing selection process.

Delta is the world’s second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 492 destinations in 89 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta’s marketing alliances allow customers to earn and redeem frequent flier miles on more than 14,000 flights offered by SkyTeam and other partners. Delta is a founding member of SkyTeam, a global airline alliance that provides customers with extensive worldwide destinations, flights and services. For more information, please visit delta.com .

ACS, a FORTUNE 500 company with more than 47,000 people supporting client operations in nearly 100 countries, provides business process and information technology outsourcing solutions to world-class commercial and government clients. The company’s Class A common stock trades on the New York Stock Exchange under the symbol “ACS”. ACS makes technology work. Visit ACS on the Internet at www.acs-inc.com .

The statements in this news release that do not directly relate to historical facts constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to numerous risks and uncertainties, many of which are outside the Company’s control. As such, no assurance can be given that the actual events and results will not be materially different than the anticipated results described in the forward-looking statements. Factors could cause actual results to differ materially from such forward-looking statements. For a description of these factors, see the Company’s prior filings with the Securities and Exchange Commission, including the most recent Form 10-K. ACS disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future event, or otherwise.

Source: ACS, Inc.

Posted February 23, 2005 in Sourcingin Talent Acquisition

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