Portugal Telecom Signs Information Technology Services Agreement with Case, CGI and IBM

p> In a competititve market undergoing major change demanding specialisation and focus, Portugal Telecom (PT) has elected to partner with systems integration and information technology leaders, CGI, Case, and IBM, to promote its position in the info-communications market.

The agreement involves the creation of two companies: PT-SI (PT Information Systems) and DCSI (Data, Computers and Information Solutions). The information systems and data processing functions of the PT Group companies will be outsourced to these new companies.

"With this partnership, PT strengthens its position in information technology both as a crucial support element for its business, and as an integrated and innovative solutions supplier in the market. The concentration of the information and technology systems of PT Group in these two new companies will enable increased specialisation by the multiple enterprise units of the Group in our core business. In addition, we will benefit from increased efficiency in our information systems and IT operations thanks to the experience and know how of our new partners," said Francisco Padinha, Member of the Board of Directors, Portugal Telecom.

PT-SI (PT Information Systems) will be active in the area of the info-communications as an advanced solution integrator of both telecommunications and Information Technology.

In the scope of this agreement, the CGI and Case consortium will manage the IT functions of PT-SI on behalf of PT Group, including applications management and support. In addition to the support PT-SI will provide to PT, IBM will work with PT to develop data processing and physical infrastructure requirements. About 500 employees will be transferred to the two companies.

PTSI will officially begin operations on January 15, 2000. The consortium members have appointed Alberto Sant'ana Godinho, as Chief Executive Officer of PT-SI: "I have worked with many of the PT companies and I am very familiar with PT's specific IT needs. With this accrued knowledge, I feel confident about our ability to grow PT-SI."

Vicente Gaspar Pires, Case's President, said, "Case and PT have been partners for many years. We look forward to building on our existing relationship and on working with our global partners, CGI and IBM, to meet PT's evolving IT requirements."

"Portugal Telecom is a dynamic leading-edge company wanting to maximize its assets wisely in order to remain ahead of the competition and at the forefront of evolution. These two companies, made up of solid partners, will help achieve PT's strategic goals," said Jean Brassard, President and Chief Operation Officer of CGI.