AT&T awards Keane $13.5 million Application Outsourcing contract; Human Resources Organization now concentrates on strategic development

Business Wire, March 27, 1995

BOSTON--(BUSINESS WIRE)--March 27, 1995--Keane Inc. (AMEX:KEA), a leading software services firm, announced today that AT&T Human Resources Information Systems Organization (HRISO) has awarded Keane a three-year, $13.5 million Application Outsourcing contract.

This strategic partnership calls for Keane to support key HR applications, allowing HRISO staff to move into the development of mission-critical client/server applications for AT&T.

According to the agreement, Keane will be responsible for the support of 25 existing HRISO applications. These systems will be supported on a variety of platforms, including mainframe, mid-range, and personal computers. The mainframe software architecture supports applications utilizing COBOL, CICS, CSP, IDMS, FOCUS, RAMIS, and DB2. The midrange software architecture supports applications utilizing C, Natural, Oracle, and Informix, while the PC software applications utilize DBASE III.

"Using Keane gives us terrific advantages," commented AT&T Human Resources Systems Director Phyllis Remolador. "Hiring a single software vendor with the right vision is preferable to hiring groups of contract programmers, both in terms of direct labor and production-related cost savings. Also, another major benefit is that we now have the resources to focus on the strategic aspects of the project rather than operational tasks."

AT&T selected Keane in part because of the software services firm's performance on a previous application outsourcing project for HRISO. Last year, Keane maintained two vital legacy systems for HRISO, which allowed AT&T to minimize the management time and high turnover associated with support of the legacy systems. In the end, Keane managed to save AT&T $1 million in production costs.

For the new project, Keane will employ its Software Maintenance Management methodology, in combination with its Productivity Management methodology, to comprehensively support each application throughout the life of the engagement. The methodologies will ensure a quick and non-disruptive transition of support activities from HRISO to Keane.

"More and more companies are turning to application outsourcing as an efficient way to incorporate new technologies," commented Ed Longo, senior vice president of Keane's Information Services Division. "They need a firm like Keane that improves the quality and cost of maintenance processes by supporting existing systems during critical systems development periods."

Keane Inc.

Keane Inc. is a software services company that designs, develops and manages software for corporations and health care facilities. Headquartered in Boston, Mass., the company delivers software solutions cost-effectively and reliably through its network of 40 branch offices in the United States and Canada.

AT&T - Human Resources Information Systems Organization (HRISO) HRISO is a Corporate Headquarters Division that is based in Greensboro, N.C. The division designs, develops and manages human resource based software applications for AT&T. HRISO supports applications in the Health, Welfare, and Pension Plans, Position Filling, Compensation, Personnel Administration and Employee data areas. HRISO customer constituents have been primarily based in the United States, but 1995 is the beginning of international product deployments. HRISO will deploy an integrated client/server based HR platform to over 50 countries in 1995.

CONTACT: MarCom Dept.

Sarah Regan, 617/241-9200

AT&T SMM Manager

Rich Puljung, 910/379-5263