IBM wins $863 million contract
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- November
- 28
IBM Corp. has landed an $863 million contract to manage state data centers in Texas.
The seven-year contract with three optional one-year extensions is designed to modernize the state’s technology infrastructure, improve security and aid disaster recovery capabilities. The contract also is expected to save Texas $25 million in 2008-2009 and $159 million over its lifetime, according to the state. Data centers serving 27 state agencies are covered by the contract.
“This initiative demonstrates the state of Texas’ commitment to the strategic use of information technology across its government agencies,� said David Liederbach, general manager of IBM Global Technology Services, public sector. “Ultimately, the taxpayer benefits from more effective technology spending.�
More than 300 state employees will become workers for IBM or its subcontractors under the contract. Each affected employee will receive a job offer from IBM or three subcontractors — Unisys, Xerox or Pitney Bowes — with a pay increase of at least a 5 percent and no relocation required, according to the state.
The IBM contract replaces a 10-year contract between the state and Northrop Grumman Corp., which lost the competition for the new contract.
The major contract also continues the recent positive momentum for sales and profits at Armonk-based IBM in recent months.
Surging sales of software and hardware helped boost IBM Corp.’s third-quarter earnings by 47 percent compared with last year.
This entry was posted
on Tuesday, November 28th, 2006 at 5:28 pm by Jay Loomis.
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