M-Real predicts 35% savings in £388m IBM outsourcing deal


M-Real predicts 35% savings in £388m IBM outsourcing deal

M-Real, a European supplier of paper products, is to outsource the management of most of its IT infrastructure to IBM.

The 10-year contract, valued at £388m, is expected to take effect on 1 September, once regulation authorities approve the deal. M-Real, based in Helsinki, expects the outsourcing engagement will let it reduce its IT costs by 35%.

M-Real has already outsourced management of small portions of its IT infrastructure to other service providers, but IBM will take over most of M-Real's IT infrastructure management, said Thomas Doak-Dunelly, managing director of IBM's innovation centre in Helsinki.

About 300 M-Real employees, primarily in Finland, Germany and France, will be transferred over to IBM as part of the deal. M-Real is keeping a small group of IT professionals who will manage the outsourcing relationship with IBM and work on developing long-term IT strategies.

IBM will manage a variety of systems, from desktop computers to high-end servers, as well as networks and enterprise software.

Juan Carlos Perez writes for IDG News Service

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