RealTime IT News

IBM Lands $229 Million Deal With Amtrak

Amtrak has selected IBM to provide business recovery services, deliver help desk and desktop support services for 7,500 workstations nationwide. IBM will manage the company's voice and data networks including the systems at the corporation's three reservation call centers in Philadelphia, Chicago, and Riverside, Calif. IBM will also operate and service Amtrak's reservation system, Arrow, as well as the corporation's entire computing infrastructure from a data center in Manassas, Va.

The new $229 million agreement brings the total value of the Amtrak-IBM IT services relationship to about $330 million.

Amtrak's Arrow reservation system processes as many as 3,300 transactions per minute via the Web, telephone, and ticket counter channels, making it one of the largest systems of its kind in the rail industry. As part of their agreement, Amtrak and IBM will work together to market the Arrow system to other transportation companies.

"Through this new contract with IBM, Amtrak now has a sole resource for IT support which will save the corporation millions of dollars while improving the consistency of service as well as the performance of our computer systems," said Bob Galey, Amtrak's chief information officer. "Given its experience working with Amtrak and other leading transportation companies, IBM is uniquely equipped to help us establish an IT infrastructure that will directly affect the way we work while enhancing our ability to serve our guests."

Amtrak elected to award the new contract to IBM following an in-depth evaluation of its computing infrastructure assisted by The Outsourcing Institute, a global sourcing advisory association. Providing legal advice and counsel was the law firm of Alston & Bird.

"IBM's scale of operations and expertise in running large, complex computer systems will help Amtrak address its current financial challenges," said Dwayne Ingram, vice president, travel and transportation industries, IBM Global Services. "By selling its reservations system to other IBM customers, we can also help grow Amtrak's revenue."