The agreement, the largest of its kind ever signed in Portugal, calls for creating two companies: PT Information Systems and Data, Computers, and Information Solutions (DCSI). Portugal Telecom will outsource its computer and data processing systems to these two new companies, IBM said. Financial terms of the deal were not disclosed.
IBM was awarded the ten-year deal with systems integrators CGI and Case. Under the deal, IBM will provide hardware and data processing systems for Portugal Telecom. CGI and Case will provide applications and systems support.
IBM, which has worked with Portugal Telecom in the past, said PT-SI will be up and running in January 2000. About 500 employees will be transferred to the two new companies.
Portugal Telecom operates in markets including Brazil, where it supervises the largest mobile wireless company in South America, along with Morocco, China, Botswana, Cape Verde, Guinea-Bissau, Mozambique, and Angola.