IBM to drive Fiat transformation under £1.2bn BPO deal

Troubled car maker Fiat has awarded IBM Global Services a nine-year £1.24bn IT services contract.

Troubled car maker Fiat has awarded IBM Global Services a nine-year £1.24bn IT services contract. 

Under the agreement, an extension of the two companies’ existing relationship, IBM will manage key areas of Fiat Group’s IT activities and business process transformation projects.

Big Blue will also assume full control of Global Value, the equal joint venture founded by Fiat Business Solutions and IBM Italia in 2001. The car maker said the new agreement still gave Fiat control over its IT activities.

With the deal, Fiat is aiming to improve operational flexibility, reduce costs and improve efficiencies. 

IBM is being paid to transform Fiat’s current IT infrastructure through hardware consolidation and optimisation, and implement an on-demand IT environment. 

Fiat will also take advantage of IBM’s best practices and solutions for the car industry developed by the supplier’s research laboratories and international automotive competence centres.

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