01 Jul 2005
Car maker Fiat has signed a 1.7bn euro (£1.2bn) outsourcing contract with IBM.
Under the terms of the nine-year deal, IBM will manage core areas of Fiat's IT infrastructure and take control of Global Value, the joint venture the pair established in 2001.
'IBM will transform Fiat's current IT infrastructure, through hardware consolidation and optimisation,' a spokesperson for the company said.
Alan Roger, a research analyst with Butler Group says Fiat has been experiencing significant financial difficulties recently, and does not have the broader view or expertise of IT that IBM can deliver.
'IBM could well drive in efficiencies via this business process transformation approach,' he said.
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