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September 30, 1998

IBM WINS $2BN OUTSOURCING DEAL WITH BOEING

By CBR Staff Writer

IBM Corp has won a $2bn, five year outsourcing deal with The Boeing Co. The deal is part of a consolidation effort at Boeing following on from its 1996 acquisition of the aerospace and defense division of Rockwell, and the August 1997 merger with McDonnell Douglas. IBM Global Services already had a ten year outsourcing deal with McDonnell, signed in 1993. IBM says the new deal will build on that contract, which covered computing and network support to McDonnell Douglas units in St Louis and Southern California. It extends the agreement to cover telephone and video conferencing services to all of Boeing, including voice mail, equipment, operations and maintenance support. IBM will take on responsibility for seven sites throughout the US, and eventually consolidate them into a single site in St Louis. Boeing says it will keep hold of the responsibility for computing system architecture, design, tools and processes, and will take back the data network activity currently controlled by IBM at the former McDonnell sites.

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