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IBM, Sandvik ink £160 million strategic outsourcing deal

Multinational tech giant IBM has inked a strategic deal with Scandinavian engineering group Sandvik to outsource part of its IT infrastructure services.

The five year agreement is worth about £160 million and centres on the performance of tasks that fall under the headings of 'data centre services' and 'workplace.'

Responsibility for these areas will be formally acquired by IBM, who will offer employment to Sandvik resources currently working in the jurisdictions.

"We are very satisfied to have entered this agreement with IBM and have high expectations on their ability to meet our demands. This is an important step," said Göran Kördel, CIO of Sandvik.

An IBM representative confirmed that both companies were satisfied with the arrangement, which sees the Swedish firm take a significant step towards it ultimate goal of being a globally integrated company, and helps to enhance its security and employee prospects.

"A successful transition of both employees and technology to IBM is designed to not only enhance the security of Sandvik's business operations, but also to provide a unique opportunity for Sandvik's highly skilled employees to continue their professional career, supporting both Sandvik and other IBM clients," added Yvonne Andersson, Strategic Outsourcing Country Executive at IBM in Sweden.

'Data center services' includes the operation of all server platforms including hardware, application platform software and facilities where servers are placed, while 'workplace' includes all services to manage office PCs as well as messaging, collaboration, standard applications and second-line user support.