Big Blue lands Boeing service deal
IBM scoops up two IT services contracts worth about $260 million, with the aerospace giant and with a Korean cosmetics company, the latest services wins for the company.
Big Blue said Friday it has landed a three-year contract with extension options to manage the aerospace giant's corporatewide voice communications network. The deal, estimated by IBM to be worth $160 million, covers voice services to Boeing's network of nearly 150,000 users.
At the same time, IBM announced a 10-year deal with Korean cosmetics company Amore Pacific, under which it will operate and manage Amore Pacific's IT infrastructure. Big Blue said the contract is worth about $100 million.
The contract wins come on top of recent successes by IBM in the services field. In July, the Armonk, N.Y.-based company said it had inked a $1.1 billion, 10-year IT services contract with ABB, the Swiss power and automation technologies company. Earlier this month, it unveiled a seven-year IT outsourcing contract with beverage company Diageo. Analysts familiar with that deal estimated its value at $400 million to $500 million.
And earlier this week, consumer products titan Procter & Gamble said it is in exclusive negotiations with IBM for a multiyear contract for the management of its employee services.
Big Blue last year strengthened its services wing with the purchase of PricewaterhouseCoopers' consulting division. It recently disclosed that the price it paid for the unit has grown from $3.5 billion to roughly $3.9 billion. The higher price stems partly from a review of assets transferred to IBM in the deal.
IBM competes for IT services contracts against companies such as Electronic Data Systems, Accenture and Hewlett-Packard.