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FedEx and UPS IT projects still on track

While neither Federal Express (FedEx) nor UPS has put any major IT projects on hold, both plan to scrutinise future initiatives carefully in the aftermath of the terrorist attacks in the US.

Gary Kallenbach, vice-president of information services, said UPS had no major IT projects on hold as a result of the economy. "When UPS begins a project, we finish it 99% of the time," he added.

Earlier this year, for example, UPS kicked off a mammoth $100m (£68m) project to install wireless LANs and Bluetooth short-range wireless systems throughout its worldwide distribution network.

The change in the economic climate means that new IT projects currently in the evaluation phase will be scrutinised more closely, Kallenbach said.

FedEx in Atlanta has also decided not to delay any major IT projects, according to Traci Barnett, a FedEx spokeswoman.

However, Barnett added, "because of the efficiency and effectiveness of systems we now have in place, it is likely that we may see a decline in the growth of IT spending in the future. Our annual IT budget [capital and expense] has been about $1.5bn (£1bn). Obviously in today's economic climate, we will continue to look at all expenses and capital expenditures and make sound business decisions as business warrants."

Over the past year, FedEx, like UPS, has upgraded the wireless LAN systems in its hub and terminals and currently has started to install the technology on its fleet of 180-plus aircraft.

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