Pinnacle Alliance Announces Final Contract Signing With JP Morgan
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FOR IMMEDIATE RELEASE
July 16, 1996
PINNACLE ALLIANCE ANNOUNCES FINAL CONTRACT
SIGNING WITH J.P. MORGAN
The Pinnacle Alliance -- a consortium of five companies that includes
J.P. Morgan, Computer Sciences Corporation, Andersen Consulting,
AT&T Solutions and Bell Atlantic Network Integration -- today
announced the formal signing of a contract that calls for the
Alliance to manage parts of J.P. Morgan's global technology infrastructure.
Estimated value of the seven-year contract, which takes effect
today, is more than $2 billion.
Morgan originally announced its decision to team with the Alliance
and negotiate a final contract on May 13, 1996.
The Pinnacle Alliance will manage activities that represent about
a third of Morgan's $1 billion of annual technology expenditures.
The company expects to achieve aggregate savings of approximately
15 percent on projected technology costs over the life of the
The Alliance was formed to help Morgan stay on the curve of a
fast-changing financial services marketplace using technology
to infuse its business operations with new efficiencies and innovations.
In addition, the Alliance will give Morgan new flexibility to
exploit emerging technologies, manage costs and quickly respond
to fluctuating financial markets.
Technology activities to be managed by the Alliance include J.P.
Morgan data centers in New York, London and Delaware; distributed
computing operations (such as desktop support and local area networks)
and voice and data services in New York, Delaware, London and
Paris; and certain internal corporate applications in the United
States and Europe. All of the Morgan positions that currently
support tasks covered by the agreement will be assumed by one
of the Alliance firms.
Formally, the contract for the Pinnacle Alliance is between J.P.
Morgan and Computer Sciences Corporation. CSC in turn has signed
contracts with each Alliance company. Primary responsibilities
for each company include:
- J.P. Morgan - Responsible for setting the strategic
direction for the Alliance.
- Computer Sciences Corporation - Lead company in the
Alliance, with overall responsibility for data centers and mainframe,
midrange and distributed operations worldwide.
- Andersen Consulting - Responsible for applications
development and maintenance support.
- AT&T Solutions - Responsible for global network
- Bell Atlantic Network Integration - Responsible for
supporting distributed computing services in the United States,
such as desktops, local area networks and servers.
J.P. Morgan is a leading global banking firm that serves clients
with complex financial needs through an integrated range of advisory,
financing, trading, and investment capabilities. Headquartered
in New York, it employs 15,000 professionals in 28 countries.
Revenues in 1995 were $5.9 billion; net income was $1.3 billion.
Computer Sciences Corporation had $ 4.2 billion in annual revenue
for the 12 months ended March 29, 1996. The company is headquartered
in El Segundo, California, and has 34,000 employees worldwide
providing clients with a wide range of professional services,
including management consulting, business reengineering, and information
systems consulting and integration, and outsourcing.
Andersen Consulting is a $4.2 billion global management and technology
consulting organization whose mission is to help its clients change
to be more successful. The organization works with clients from
a wide range of industries to link their people, processes, and
technologies to their strategies. Andersen Consulting has more
than 38,000 persons in 47 countries.
AT&T Solutions is the professional services division of the
AT&T Corporation, the worldwide leader in providing telecommunications
services to businesses and consumers. AT&T Solutions offers
services that are linked to providing seamless solutions and maximizing
the application of electronic commerce. With headquarters in Washington,
D.C., AT&T Solutions has more than 11,000 business and technology
professionals located around the world providing service to more
than 200 clients.
Bell Atlantic Network Integration, a subsidiary of Bell Atlantic
Corporation, offers services covering the full life-cycle of the
planning, deployment, and management of enterprise networks. This
includes the consulting, integration, outsourcing, and ongoing
support of enterprise networks. Bell Atlantic Corporation is at
the forefront of the new communications, entertainment, and information
industry. In the mid-Atlantic region, the company is the premier
provider of local telecommunications and advanced services. Globally,
it is one of the largest investors in the high-growth wireless
- J.P. Morgan Contacts:
George Shakespear (212) 648-9585
Joseph Evangelist (London) 44.171.325.4289
Pinnacle Alliance Contact:
Mary Rhodes 212.235.4806
Bell Atlantic Network Integration Contact:
Kate Burns (610).407-2036