IBM will oversee infrastructure services, while Indian providers Infosys and TCS will offer application support and enhancements. Services firms Accenture and Patni were also named as preferred suppliers.

BG Srinivas, senior vice-president at Infosys, said, “Modular global sourcing means firms are not putting all their eggs in one basket.”

But Dominique Raviart of analyst Ovum said such deals need careful management. “There is a supply management role and contracts must be clearly divided to avoid overlap.”

‹ Cost-cutting drives outsourcing, p27