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Deal boosts IBM strategy as an outsourcing resource

Big Blue will manage Telstra's supply chain services operations

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Candace Lombardi
headshots_Candace_Lombardi_140x100.jpg
Candace Lombardi
In a software-driven world, it's easy to forget about the nuts and bolts. Whether it's cars, robots, personal gadgetry or industrial machines, Candace Lombardi examines the moving parts that keep our world rotating. A journalist who divides her time between the United States and the United Kingdom, Lombardi has written about technology for the sites of The New York Times, CNET, USA Today, MSN, ZDNet, Silicon.com, and GameSpot. She is a member of the CNET Blog Network and is not a current employee of CNET.
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IBM has signed a seven-year deal to manage Australian telecom Telstra's supply chain services operations. IBM's Supply Chain Managed Business Process Services will provide management and reporting for procurement services including energy, utilities and industrial supplies. Telstra also will have real-time access to capacity, inventory, production, delivery and forecasting. IBM would not disclose the financial terms of the deal, but a company representative said Telstra will save an estimated $375 million over the seven years.

IBM has been building its business as a provider of outsourcing services by signing deals with CVS/Pharmacy, Delta, ACOM in Japan, and St. George Bank, also in Australia. The Telstra deal is notable, however, because of its size.