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September 30, 1998

IBM AND AT&T TIE UP WITH BANC ONE IN OUTSOURCING DEAL

By CBR Staff Writer

IBM Global Services, AT&T Solutions and Banc One Corp have formed a technology alliance centered around $1.8bn in long-term outsourcing deals that the bank has signed with the two technology giants. The first deal is a six-year $1.4bn contract with AT&T, which will take over the management of Banc One’s voice and data networking needs and transform the bank’s legacy communications networks into a single IP-based networking platform. The second deal, a seven-year $420m contract, will see IBM manage the majority of Banc One’s data center operations, including helpdesk support and mainframe/midrange server management. The contracts form the basis of the Technology One Alliance between the three companies, which will see 550 employees from BancOne join AT&T and IBM. As part of the tie-up, IBM and AT&T will also work on merging their network and systems management technology. The idea is to create an interface between AT&T’s Global Enterprise Management System and IBM’s Enterprise Systems Management platform. Any useful work that comes out of the alliance will be developed and made available to other customers, according to the partners in the virtual company. Both IBM and AT&T will establish facilities in the vicinity of Banc One’s Columbus, Ohio headquarters to house new and existing workers. They will also establish links with local colleges, including Ohio State University, to develop academic programs aimed at producing qualified high-technology employees. Banc One said the outsourcing deals will allow it to save more than $100m over the lives of the contracts, as opposed to building up the infrastructure itself.

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