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Amtrak, IBM in $229 million IT deal

In an effort to conserve cash, Amtrak has expanded an information technology systems outsourcing contract with IBM Global Services to the tune of $229 million over seven years. Amtrak, which lost $1.1 billion last year and is in danger of losing federal funding that enables it to maintain money-losing routes, expects to save $85 million as a result of the deal. As part of the agreement, IBM will maintain Amtrak's reservation system, and the two companies will market the system to other transportation companies, creating a new source of revenue for the passenger-rail service that operates in 46 U.S. states. Amtrak's reservation system handles as many as 3,300 transactions per minute via the Web, telephone and ticket counters.

In an effort to conserve cash, Amtrak has expanded an information technology systems outsourcing contract with IBM Global Services to the tune of $229 million over seven years. Amtrak, which lost $1.1 billion last year and is in danger of losing federal funding that enables it to maintain money-losing routes, expects to save $85 million as a result of the deal.

As part of the agreement, IBM will maintain Amtrak's reservation system, and the two companies will market the system to other transportation companies, creating a new source of revenue for the passenger-rail service that operates in 46 U.S. states. Amtrak's reservation system handles as many as 3,300 transactions per minute via the Web, telephone and ticket counters.