HP, Healthways sign 10-year applications and technology services outsourcing agreement

HP Enterprise Services and Healthways, Inc. (NASDAQ:HWAY) today announced the signing of a 10-year, $380 million applications and technology services outsourcing agreement to support growth and expand value to Healthways' customers.

With this agreement, HP (NYSE:HPQ) will provide Applications Development and Applications Management services to further accelerate the transformational development of the well-being improvement company's applications and technology infrastructure. As a result, Healthways' mission-critical application, EMBRACE™, will be able to support an increasing volume of customers and increasing market demand for multiparty integration.

"With a primary goal of healthier populations in private- and public-sector programs, EMBRACE experiences increased membership that requires added functionality," said Ben R. Leedle, president and chief executive officer, Healthways Inc. "HP's deep healthcare expertise offered the best opportunity to enhance an already powerful platform with greater scalability and sustainable timely innovation at a lower cost for us."

To support the EMBRACE environment, HP will utilize its information technology infrastructure library (ITIL) based enterprise service management platform to provide a comprehensive and integrated solution.

Healthways will have greater flexibility and cost efficiencies by utilizing the HP Best Shore global delivery footprint for its HP Enterprise Applications Hosting, Server Management, Service Desk, Application Management, Workplace360 services and Network Management services.

"The increased focus on improving health and well-being offers companies like Healthways unique opportunities for continued growth and expansion," said Sue Arthur, vice president, Healthcare and Life Sciences, HP Enterprise Services. "HP has 45 years of deep vertical experience to partner with companies like Healthways to address complex emerging business challenges effectively while mitigating risk."

The companies also will expand their relationship for the purpose of identifying and pursuing new opportunities in select government and commercial markets. This relationship will bring together HP's healthcare applications expertise for private and public sector health insurance programs with Healthways' expertise in designing and delivering well-being-improvement solutions for domestic and international health plans, employers and governments. As a result, customers will be provided with the opportunity to access new and innovative advances in well-being solutions.

Source: Healthways Inc.