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Tech Industry

IBM keeps trains on schedule

Big Blue signs a 5-year, $110 million contract to manage Consolidated Freightways' information technology infrastructure.

IBM is making sure the trains run on time at Consolidated Freightways.

The computing technology giant said it has signed a 5-year, $110 million contract to manage Consolidated Freightways' information technology infrastructure.

IBM's Global Services unit will manage the company's data center, and network, voice, desktop management, help desk, support, and business recovery services through the year 2003.

Consolidated provides transportation services for freight throughout North America, and between the United States and more than 70 countries.

Big Blue's services unit is the industry's largest. IBM said it has signed a whopping $24 million in new services contracts so far this year, including 27 contracts valued at $100 million or more.

According to a report from Wasserstein Perella Securities, the services unit is the key driver of IBM's revenue growth. Services revenue has boomed by more than 22 percent in the first nine months of 1998. "IBM has been winning business easily, and still comprises only a small part of the total market. IBM may be the franchise name in services," the report states.

IBM's stock was trading at $157.75, up 0.375 in midday trading.