MICROSOFT HAS signed a contract understood to be worth €205 million with Arvato AG, one of the world’s largest networked services providers, that will be supported out of offices in Dublin and five other locations around the globe.

Arvato AG employs about 450 people at its offices at Eastpoint, Fairview, in Dublin. The office will provide support to the new business contract as will Arvato offices in Singapore, Reno (Nevada), Fargo (North Dakota), Manila and Buenos Aires.

The five-year contract creates a global business process outsourcing partnership between Microsoft and Arvato and sees Microsoft consolidating operational activities for several key business lines previously handled by multiple suppliers.

Microsoft and Arvato have worked together as strategic partners since 1994, collaborating on a number of major global projects.

Matthias Mierisch, head of Arvato’s Global BPO unit for Microsoft and chief executive of Arvato UK and Ireland, said: “Over the last 15 years, Arvato has been successfully delivering against Microsoft’s growth objectives.

“This agreement is testament to the hard work and dedication of our employees over this time and the quality of service we provide every day to some of the world’s most trusted brands,” he said.

“We will now be focusing on ensuring Microsoft realises the true benefits from this latest substantial investment in Arvato.”

Arvato is one of the world’s largest internationally networked media and communication services providers. Under the new arrangement it will manage services for Microsoft Dynamics (formerly known as Microsoft Business Solutions), Commercial Operations, Services and OEM (Original Equipment Manufacturer) divisions.

The teams will be using the latest BPM (Business Process Mapping), CRM and data management technology to handle operations including software licensing and distribution, partner reward schemes, day-to-day invoice processes for Microsoft distributors, technology deployment, technical support and customer services.

Arvato will also be developing an enhanced managed services model to simplify, globalise and standardise processes across the four business lines and significantly reduce costs.

Irish-registered Arvato Financial Services, a provider of back office financial services, made a pre-tax profit of €9.68 million in the 2008 year, on turnover of €56.4 million, according to its latest set of filed accounts.

The parent company, Bertelsmann AG, is based in Guetersloh, Germany.