ALSTOM has scrapped a mega-outsourcing deal with EDS after failing to "reach mutually acceptable terms".

The French energy transmission giant said in a statement today that it "continues to favour outsourcing its IT in order to reduce costs, while delivering improved operational efficiency, and higher IT service and quality levels".

On November 20, 2002, ALSTOM anointed EDS as its preferred bidder for an outsourcing gig which would have seen the IT firm manage ALSTOM's IT infrastructure and applications in 14 countries - Belgium, Brazil, Canada, France, Germany, Italy, Mexico, Poland, Portugal, Spain, Sweden, Switzerland, the UK and US.

The contract would have seen approx. 1,300 ALSTOM staffers transferred to EDS, according to a press release issued by EDS at the time (how long will this document survive onsite?).

We guess IBM, CSC and others of that Ilk are already on the phone to ALSTOM. ®