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Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: w2j2 who wrote (16875)	6/29/1998 8:13:00 AM
From: princesedi	Respond to of 29386

Shouldn't this outsourcing agreement have a positive influence on Ancor, comments welcome... Monday June 29 5:36 AM EDT United Technologies, IBM in purchasing deal SOMERS, N.Y. (Reuters) - United Technologies Corp. plans to announce Monday an agreement in which IBM Corp. will handle key purchasing functions for United as part of an effort to slash $750 million in costs by the year 2000. The companies said United Technologies has awarded IBM's Global Services unit its first contract for procurement of goods and services using a new, fully integrated IBM online purchasing and payment system. Financial terms of the deal were not disclosed. Under the contract, IBM will take over corporate purchasing activities outside of the United Technologies' core production floor activities -- contracting with outside vendors for a range of products and services. As examples, marketing and advertising services, computer equipment, human resources and everything from building security and construction to airline and hotel travel reservations would be covered, an IBM spokesman said. "Our agreement with IBM is a critical step toward our goal of cutting our purchasing costs by $750 million," Kent Brittan, United Technologies' vice president of supply management, said in a statement. The sourcing and procurement program is part of IBM's new Business Process Management services. United Technologies is the first client for the new offering. The Internet-based service relies on Lotus Notes, IBM's integrated software system designed to manage inter-office and external ccommunications throughout a corporation. IBM Global Services will operate the purchasing system, manage relationships with suppliers and administer the entire process -- from taking and fulfilling requisitions to issuing authorizations for payment. The United Technologies purchasing system is an outgrowth of a similar project developed by IBM to handle its internal purchasing operations. "This agreement with UTC is an exciting example of how IBM is leveraging its own successful re-engineering to create value for our customers and new growth opportunities for IBM," said Karen Riley, head of the IBM Business Process Management team. Hartford, Conn.-based United Technologies is a $24.7 billion company in the aerospace, building and automotive industries. It products incldue Otis elevators, Carrier air conditioners and Pratt & Whitney aircraft engines. IBM Global Services is the fastest-growing segment of IBM, accounting for about $26 billion, or one-third of the company's overall 1997 revenues of $78.5 billion. ^REUTERS@ Previous Story: Still No Progress in GM strike talks Next Story: Cincinnati newspaper apologies to Chiquita