J.P. Morgan Chase Signs $5B Services Deal - 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.

IoT
IoT
News

J.P. Morgan Chase Signs $5B Services Deal

IBM wins the seven-year outsourcing contract.

After lengthy negotiations, IBM has secured a $5 billion contract to manage information systems for financial-services company J.P. Morgan Chase & Co. Under terms of the seven-year outsourcing agreement, IBM Global Services will maintain the bulk of J.P. Morgan Chase's voice and data networks, as well as help-desk services, across numerous locations.

About 4,000 J.P. Morgan Chase IT staffers and contractors will transfer to IBM in the first half of next year as part of the deal.

IBM is selling the services on a utility basis. J.P. Morgan's cost will vary based on its use of IBM's computing resources. The bank issued a statement saying it expects the deal to help significantly reduce its IT costs.

To connect J.P. Morgan Chase's numerous computer systems, IBM will deploy its utility-management software--open-source middleware that can connect apps regardless of the platform on which they run.

Faced with a tough economic climate, a number of global financial-services companies are outsourcing in an effort to cut costs. Earlier this month, Deutsche Bank signed a $2.5 billion, 10-year contract with IBM Global Services. Also in December, EDS won multibillion-dollar services agreements with Bank of America and ABN Amro.

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
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Commentary
Future IT Teams Will Include More Non-Traditional Members
Lisa Morgan, Freelance Writer,  4/1/2020
News
COVID-19: Using Data to Map Infections, Hospital Beds, and More
Jessica Davis, Senior Editor, Enterprise Apps,  3/25/2020
Commentary
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
Register for InformationWeek Newsletters
Video
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll