July 22, 2005

Imaging systems and services provider Danka Business Systems and global communications provider MCI, announced they would sign a five-year agreement in which Danka Business Systems will outsource the balance of its United States IT operations to MCI.

As Danka's primary technology provider, MCI will manage all of Danka's core network services, including its IT operations and applications support, Wide Area Network, Local Area Network, IP services, servers, desktops and phone systems, and oversee Danka's network of ancillary technology vendors and partners.

The $70 million agreement will result in the transition of more than 60 Danka employees to MCI and its application support provider, Titan Technology Partners.

Danka expects to generate substantial annual savings once the agreement goes through, driving Danka’s productivity and expanding its business.

"MCI is providing a fully managed, integrated IP-based IT infrastructure, scalable to our current and future needs which will enable us to elevate our IT environment," says Todd Mavis, Danka's chief executive officer.

"At the same time, we are able to substantially reduce our IT costs. We view MCI as a world-class technology company, and this new agreement builds on an existing relationship under which we provide services to them."

Source: The WHIR