IBM <IBM.N> TO ANNOUNCE MAJOR SERVICES DEAL WITH NTT <9432.T> -
SOURCES
NEW YORK, Oct 30 (Reuters) - International Business Machines Corp. <IBM.N> will announce on Tuesday a major services agreement with Japan's Nippon Telegraph and Telephone Corp. that gives the world's No. 1 computer maker a big boost in telecoms services in Asia, industry sources said on Monday.
Under the agreement, IBM will form an alliance with NTT's NTT Comware to provide information technology services such as consulting, systems integration and outsourcing to Japanese telecommunications giant NTT <9432.T> .
The total value of the deal to IBM and NTT Comware is $12 billion to $14 billion over 10 years, the sources said. So far this year, IBM has won services contracts in Japan worth more than $4 billion, the sources said.
The agreement positions IBM to expand in the telecommunications arena, by adding NTT's expertise, and to take advantage of a move to outsourcing in Asia.
The agreement represents IBM's largest outsourcing deal in Asia so far, the sources said.
Some NTT employees would be moved to NTT Comware to handle the work, the sources said. The alliance would be able to seek contracts outside of NTT Comware's parent company, they said. |
