Telstra, Australia’s largest telecommunications provider has signed one of two contracts expanding applications services with EDS, an HP company.

The five-year, US$140 million deal is one of the largest application management engagements signed this year in Australia. The contract also includes potential opportunities of up to US$245 million. Under the agreement, which runs through to 2014, EDS will provide applications development and management services for Telstra’s critical business applications.

John McInerney, Telstra CIO and group Managing Director of Information Technology, commented, “This is an important milestone for Telstra IT. One of the key outcomes of our IT transformation is the delivery of operational excellence.”