IBM Snags Pair Of Outsourcing Deals

Big Blue wins multi-year tech services agreements from Maersk and Navistar.
IBM has won two significant outsourcing contracts in the past two days.

On Tuesday, the company announced the extension of its IT services agreement with shipping giant A.P. Moller-Maersk through 2014. IBM on Monday revealed a seven-year outsourcing deal with truck and RV maker Navistar.

Financial terms of the contracts were not disclosed. IBM said it would deploy its standardized Global Delivery Model for tech services on behalf of Maersk.

IBM's model converts common IT processes to standardized components that can be implemented consistently across geographic and organizational boundaries.

"Our transition to IBM's Global Delivery Model has been seamless while delivering the financial and service level benefits expected," said Maersk Line CIO Adam Gade, in a statement.

"This extension now is a natural next step and provides a sound foundation for further improvements, our aim being to provide the A.P. Moller-Maersk group of companies with cost effective IT solutions," said Gade.

Maersk operates in 130 countries and provides a range of services in the shipping, shipbuilding, energy, retailing, and manufacturing industries.

A day earlier, IBM announced a seven-year agreement to provide Navistar with a range of IT services.

The deal calls for Big Blue to provide the company with data center relocation, server and storage management, and database management services.

"With facilities on five continents and continued global growth, it is imperative for Navistar to transform its IT infrastructure to efficiently manage the company's existing needs to support global growth," said Navistar CIO Don Sharp, in a statement.

Services account for about half of IBM's revenues. The company's Global Technology Services unit posted sales of $9.4 billion in the most recent quarter, off 4% from the previous year.

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