IBM has signed a seven-year strategic IT outsourcing agreement with S-OIL, a oil company in South Korea. According to the deal, IBM will support the company’s business growth plan. The deal reportedly helps S-OIL to reduce its investment in IT infrastructure and in-house maintenance services.
IBM will provide outsourcing services to S-OIL in the areas of application operation and management, server, storage and network operation services, user support services, and disaster recovery services.
As part of the agreement, a Value Creation Center (VCC) will be set up to capitalise on IBM’s experience and S-OIL’s industry knowledge and market insights.
Staffed by employees from both companies, the VCC will focus on delivering advantage to S-OIL by supporting the alignment of business and technology strategies.
Joseph Msays, vice president of strategic outsourcing at IBM Asia Pacific, said: One of the differentiating aspects of this partnership is the creation of a Value Creation Center that provides S-OIL with a structured, sustained process for innovation and industry benchmarking, allowing S-OIL to focus on its core business and expansion plan.
“We believe our outsourcing services can create for S-OIL high value and innovation with which S-OIL will be able respond more effectively to the changing global business environment.
Under the agreement, a service fee will be imposed based on the services provided by IBM.
