IBM wins 200m euro outsourcing deal

AMSTERDAM: International Business Machines Corp said that it had signed a 200 million euro contract with Britain's Aviva-owned Delta Lloyd to take over IT services operations from the insurer.

Under the contract IBM will take over the data centre, the management of all personal computers and telecommunications from Delta Lloyd, a top-five life and pensions business in the Netherlands, for seven years.

Around 150 Delta Lloyd employees will be transferred to IBM.

"The employment conditions offered by IBM were a major reason for Delta Lloyd's decision to opt for IBM," the two companies said in a joint statement.

The transition is expected to take place in the second quarter of 2004.

Outsourcing is one of the fastest growing segments in the otherwise stagnant IT services industry, as companies focus on their core operations and farm out systems and support.

"The outsourcing of the ICT infrastructure services fits in with Delta Lloyd's strategy to concentrate on its core competencies," Delta Lloyd said.

© Reuters