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To: jim g. who wrote (17923)	9/2/1998 8:59:00 PM
From: J Fieb	Read Replies (1) \| Respond to of 29386

jim, IBM GS just keeps getting bigger. Huge deal. Maybe sometime they'll need some FC hardware....... techweb.com BM Wins Giant Telecom Outsourcing Deal (09/02/98; 12:16 p.m. ET) By Andrew Craig, TechWeb IBM has secured a massive outsourcing deal with Britain's second-largest telecommunications provider -- Cable & Wireless Communications -- and said other similar deals in Europe could follow. Cable & Wireless Communications, the U.K. domestic telecom-cable TV subsidiary of Cable & Wireless, said Wednesday it had signed a contract with IBM (company profile) to manage its IT services in a 10-year deal worth 1.8 billion pounds ($3 billion). Parent company Cable & Wireless, which recently purchased MCI's Internet assets, is not included in the deal. The deal, which has been on the negotiating table for the past five months, is the biggest ever between an IT services company and a telephone company, according to IBM. Similar deals between IBM and telecom providers exist in several other countries, including the United States and Australia. No job losses will be incurred by Cable & Wireless Communications as a result of the deal, said the company's chief information officer, Andrew McCloud. However, the deal will result in the transfer of 1,000 staff from the telco to IBM's Global Services division, and there will be the creation of an additional 400 jobs at IBM. The liberalization of several of Europe's telecom markets this year has presented IBM with many other similar outsourcing opportunities, according to Brian Sellwood, Global Services manager for IBM's northern region. "The same forces driving [Cable & Wireless Communications] to make a deal like this are driving other telecom providers," he said. Sellwood said he couldn't comment specifically on any other discussions. Newer telcos are frequently more inclined toward outsourcing all kinds of things -- including billing and customer care -- said Graham Finnie, senior analyst at the Yankee Group, in Watford, England. "They want to get into the market quickly and don't want to invest in areas outside their core business -- they want to outsource," he said. All telcos, including traditional providers, are reconsidering the way they manage their IT, said Finnie. "They can't manage it themselves anymore. They tended to keep everything in-house, but this is not in the long term a viable strategy," he said. Under the terms of the deal, IBM will manage the telco's mainframe, midrange, and desktop services as well as application development on these platforms. Cable & Wireless Communications said it will keep its strategy, security, and millennium operations in-house. The telco also retains the right to decide which hardware platforms to use in the future.

To: jim g. who wrote (17923)	9/2/1998 10:47:00 PM
From: doc	Respond to of 29386

jim just click on spotlight at the bottom of the page and check the highs/lows for monday the 31st. the list of new lows is long. a lot of names on this list were once highly regarded.