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GE Capital Services and IBM Announce Global Information Technology Outsourcing
Alliance
PR Newswire, Wednesday, March 04, 1998 at 08:36
STAMFORD, Conn., March 4 /PRNewswire/ -- In one of the largest agreements
of its kind, GE Capital Services and IBM Global Services announced their
intent to enter into a long-term information technology alliance.
Under the agreement, GE Capital Services will outsource its mainframe and
midrange processing for its own businesses to IBM Global Services. IBM also
will acquire the commercial data center outsourcing business of GE Capital
Services Technology Management Services (TMS) and serve its current external
customers worldwide. IBM will manage the data center and network operations
for GE Capital Services' businesses, as well as for GE Capital Services'
customers. The agreement is scheduled to take effect by the end of the first
quarter.
"GE Capital's businesses rely on high quality, low cost data center
processing. This unique alliance will lower GE Capital's operating costs and
enhance service quality," said Nigel Andrews, executive vice president, GE
Capital Services. "IBM's best-of-breed strengths in mainframe and midrange
computer services will allow the latest technology to drive continued long-
term improvements in service quality and cost."
The agreement extends the already extensive relationship between GE
Capital Services and IBM. "We're very pleased that GE Capital has chosen to
expand their ongoing relationship with us," said Doug Elix, General Manager,
IBM Global Services, North America. "Through this alliance of industry
leaders, we look forward to continuing to serve both GE Capital and now many
of their highly valued customers around the world with the kind of quality,
experience and depth that are IBM's unique attributes."
While financial terms have not been disclosed, GE Capital Services will
realize significant immediate and long-term savings. In addition, IBM Global
Services has committed to enhance IT service quality -- critical to GE Capital
Services in light of GE's drive to Six Sigma Quality -- improve cost
efficiency, and continue GE Capital Services' commitment to employees. The
enhanced services also will be available to the current commercial customers
of GE Capital Services TMS along with access to the extensive resources of IBM
Global Services.
IBM initially will provide IT infrastructure services from GE Capital
Services facilities located in Alpharetta, GA, Dallas, TX and Toronto, Canada.
As part of the agreement, the majority of GE Capital Services TMS employees
engaged in service delivery, including those at other sites, will be employed
by IBM.
With its global IT Solutions business, GE Capital Services will continue
its leadership role in providing desktop IT services to GE Capital Services
and commercial customers worldwide. GE Capital Services has built, in IT
Solutions, the leading global desktop services provider with current annual
revenues of $10 billion. IT Solutions provides desktop and client server
products, operating and applications software, local and wide area network
design and IT consulting services to commercial and government customers
through 200 offices in 20 countries worldwide.
GE Capital Services, with assets of approximately US$250 billion, is a
global, diversified financial services company with 27 specialized businesses.
A wholly owned subsidiary of General Electric Company (NYSE:GE), GE Capital
Services, based in Stamford, CT, provides equipment management, mid-market and
specialized financing, specialty insurance and a variety of consumer services,
such as car leasing, home mortgages and credit cards, to businesses and
individuals around the world. GE is a diversified manufacturing, technology
and services company with operations worldwide.
IBM Global Services is the worlds' largest information technology services
company with 1997 revenue of approximately $26 billion. IBM's
110,000 services employees serve customers in 164 countries providing business
and information technology consulting, systems integration, application
development, product-specific support and network services. Outsourcing
customers include such well-known companies as Lucent Technologies, Daiwa
Bank, Novartis, McDonnell-Douglas, and Mercedes-Benz.
SOURCE GE Capital Services
-0- 03/04/98
/CONTACT: Neal McGarity of GE Capital Services, 203-961-2290; or
Jan Walbridge of IBM, 914-766-4647/
Companies or Securities discussed in this article:
Symbol
Name
NYSE:GE
General Elec Co
NYSE:IBM
Intl Business Machines Corp
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