Megadeals Live On - InformationWeek

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Megadeals Live On

A rainbow of sweater from The GapThe trend in outsourcing may be toward smaller, shorter contracts, but no one told the CIOs at Gap Inc. and United Airlines. Both companies have signed sizable contracts with big services vendors, in a sign that the megadeal isn't dead yet.

An SEC filing revealed that the casual clothier is handing over its IT infrastructure to IBM Global Services under a 10-year agreement worth $1.1 billion. IBM could use the business--it said last week its services revenue declined 5% in the fourth quarter. IBM will provide a range of technology services to Gap, including support and management of mainframes, servers, networks, and data centers. IBM also will provide Gap with help-desk and disaster-recovery services. About 400 Gap workers will move to IBM.

Meanwhile, United Airlines tapped EDS to provide desktop, help-desk, and other managed services in a pact that's also supposed to last 10 years. That assumes United, expected to emerge from Chapter 11 this week, is still flying in 2016. The value of the deal wasn't disclosed.

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