IBM Inks $1.1 Billion Outsourcing Deal With Gap - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IT Leadership // IT Strategy

IBM Inks $1.1 Billion Outsourcing Deal With Gap

The 10-year pact calls for IBM to support and manage mainframes, servers, networks, and data centers, as well as provide help-desk and disaster-recovery services.

Gap Inc. is turning over the management of its IT infrastructure to IBM under an outsourcing deal worth about $1.1 billion, according to a regulatory filing by the casual clothier. Under a 10-year deal disclosed in a Securities and Exchange Commission document dated Jan. 13, IBM will provide a broad range of technology services to Gap, including support and management of mainframes, servers, networks, and data centers. IBM will also provide Gap with help-desk and disaster-recovery services.

As part of the deal, about 400 Gap workers will transfer to IBM. They may have reason to be nervous. Increasingly, at least some amount of corporate IT work that's outsourced to a services vendor ends up offshore after a transition period of several months. The process is seldom acknowledged publicly by either party. Officials at IBM and Gap weren't immediately available for comment.

To receive the full value of the contract, IBM needs to meet a number of service levels and other conditions, according to the SEC filing. Failure to meet the conditions would entitle Gap to receive "credit against charges otherwise due," withhold "certain payments," or "terminate the agreement."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

Blockchain Gets Real Across Industries
Lisa Morgan, Freelance Writer,  7/22/2021
Seeking a Competitive Edge vs. Chasing Savings in the Cloud
Joao-Pierre S. Ruth, Senior Writer,  7/19/2021
How CIO Roles Will Change: The Future of Work
Jessica Davis, Senior Editor, Enterprise Apps,  7/1/2021
White Papers
Register for InformationWeek Newsletters
Current Issue
Monitoring Critical Cloud Workloads Report
In this report, our experts will discuss how to advance your ability to monitor critical workloads as they move about the various cloud platforms in your company.
Flash Poll