Feeds

IBM wins $5bn JP Morgan outsourcing deal

Staff transfers etc.

  • alert
  • submit to reddit

Top three mobile application threats

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

3 Big data security analytics techniques

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.