Feeds

IBM wins $5bn JP Morgan outsourcing deal

Staff transfers etc.

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

ComputerWire logo IBM Corp used the quiet of the holiday season to finalize contract details on its $5bn seven-year infrastructure outsourcing deal with investment bank JP Morgan Chase & Co, which is said to be the largest of its kind and bigger than an earlier $4bn win for IBM with American Express.

The agreement signed with the investment bank will see IBM Global Services take over a number of mainframe data and help desks centers, distributed computing infrastructure, data and voice networks, and some 4,000 JPM staff and contractors.

Thomas Ketchum, vice chairman for JP Morgan Chase said the move would see IBM deliver various computing capabilities "on demand" across its retail banking, mortgages, trading and securities processing divisions. He said that this is expected to lead to absolute costs savings, increased cost variability, and improvements in service levels.

This is not the first time JP Morgan has made headline news over its outsourcing arrangements. An earlier complex deal squared up a quartet of Andersen Consulting, AT&T, Bell Atlantic Corp and CSC as IT and telecommunications partners in a $2bn, seven-year agreement, which supposedly went on to produce 15% savings in IT costs.

As part of this latest deal, IBM Global Services is pushing the notion of Utility Management Infrastructure, a proposal to tie together disparate servers and storage systems and different brands of devices without requiring new applications to be written for each separate system.

IBM GS beat off competition from rival EDS Corp, which this week responded with news of its own, when it confirmed it had clinched a deal with ABN AMRO Holding NV over an IT outsourcing contract for ABN AMRO's London-based Wholesale Client business unit that provides financial services to corporate and institutional clients. That deal is being valued at 1.3bn euros ($1.3bn) based on a five-year period. Approximately 1,000 staff are expected to transfer over to the outsourcing company

© ComputerWire

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
Bada-Bing! Mozilla flips Firefox to YAHOO! for search
Microsoft system will be the default for browser in US until 2020
Google bags OBSCENELY LARGE Times Square ad space for New Year's
Choc Factory pays millions for whacking new digital screen
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Getting ahead of the compliance curve
Learn about new services that make it easy to discover and manage certificates across the enterprise and how to get ahead of the compliance curve.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.