IBM, Cendant in technology pact
msnbc.com
NEW YORK, Dec. 3 — Leading computer company International Business Machines Corp. and travel and real estate firm Cendant Corp. Monday said they signed a 10-year, $1.4 billion technology services agreement.
AS PART OF the agreement, New York-based Cendant, which is known for its Avis Rental Cars and Ramada hotels brands, will transfer 500 technology employees to IBM, the companies said. Such transfers are typical when a company takes over a large technology operation.
Armonk, New York-based IBM will manage Cendant’s data center in Denver, Colorado, including its mainframes and large computer servers, as well as transactions processing. IBM will also operate a support desk for thousands of the company’s employees and perform Web hosting.
Cendant said it will continue to run the vast majority of its technology operations in-house, keeping about 2,500 technology employees who work largely on applications development, computer networks and Internet architecture. Cendant has about 60,000 employees in total. |
