Maybe there's something to this whole "world is flat" globalization thing after all. Japanese auto giant Nissan is handing over the management of the IT systems that power its U.S. and Canadian manufacturing operations to American technology powerhouse IBM, which in turn will use its operating centers in Brazil and India to fulfill the contract.
Under the deal disclosed Thursday, IBM will manage desktop systems, network services, help desks, dealer systems, and other key infrastructure elements for Nissan North America. An IBM spokesman says the contract is worth "several hundred million dollars," but declined to be more specific. As part of the deal, Nissan is also buying a number of new server systems from IBM. The agreement extends an existing services contract between the two companies, originally signed in 1999, through to 2012.
IBM is pushing more of its service operations offshore to low-cost countries. The company says it will provide Nissan with infrastructure support from sites in Sao Paulo, Brazil, and Bangalore, India. In a statement, Nissan North America CIO Bob Greenberg said he was anxious to "leverage IBM's global delivery capabilities." Earlier this week, IBM said it would move all development of business solutions sold by its consulting arm to a new center in Bangalore.