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IBM lands $1.1bn deal with utility firm

Daniel Thomas
Global utility company ABB has outsourced 90% if its IT infrastructure operations to IBM Global Services, in a 10-year deal valued at $1.1bn (£678m).

The deal, announced on 28 July, will see 1,200 ABB employees moving to IBM. Combined with pilot contracts signed in the fourth quarter of 2001 for approximately $600m (£370m), the full value of the relationship will approach $1.7bn (£1.1bn) over 10 years.

"This long-term deal allows us to significantly take down costs, while benefiting from IBM's global expertise," said Peter Voser, ABB's chief financial officer. 

IBM Global Services will take responsibility for the operation and support of IT infrastructure in 14 countries in Europe and North America representing some 90% of ABB's IT infrastructure.

The deal includes taking over the management of servers, operating systems, corporate networks, PCs and help desks.

Some 510 ABB employees have already transferred under a pilot project with a further 780 ABB employees set to move to IBM in September.

A small team will stay with ABB to oversee and co-ordinate activities with IBM.


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