IBM Global Services signed a memo of understanding regarding a technology services contract with European carmaker Fiat. Under the proposed agreement, IBM Global, IBM Italy, and Fiat's own business-services arm will work together to manage Fiat's computer systems and to develop and upgrade software being used at the company. The project, which is estimated initially to bring in revenue of about $615 million (700 million euros) per year, also involves some 2,600 employees and additional partners, including the Italian consulting unit of business-software maker SAP.
IBM recently has enjoyed strong performance. Last quarter, revenue from its consulting arm grew 15 percent on contract signings totaling $10.2 billion. The unit ended the period with a total of $87 billion in contracts in the pipeline. The Fiat proposal, expected to be made final by the end of June, is subject to regulatory approval.