IBM Corp is to install 21,000 desktops in Europe and the US for chemicals giant ICI Plc as part of the so-called Quantum project, and will hand over the management of its systems to IBM. The seven-year contract is said to be ICI’s largest outsourcing contract to date, which would put it ahead of the $122m deal it struck with facilities management firm Origin BV in 1996.

ICI says it’s using Quantum to establish a standard for hardware, software and network design across the company in order to cut costs. ICI, which has a fragmented and federated business structure, also hopes to improve its communications and customer service as a result of the deal. IBM won’t be getting all the hardware business, however. ICI has existing hardware supply contracts with Dell Computer Corp and Hewlett-Packard Co, which will be unaffected by the deal, the company said. IBM, which has worked with ICI before, will install the Dell and HP desktops.