IBM in Outsourcing Pact With Brazil's Embratel
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A major score for IBM: Brazil's largest telecommunications company, Embratel, awarded Big Blue a 10-year outsourcing pact to help it manage the company's IT infrastructure.
The contract calls for IBM to help the telco cut its IT costs by 30 percent.
The companies did not release financial terms, but the pact is reportedly valued at more than $300 million, and calls for IBM to handle a major portion of the telephone company's IT operations.
In all, the pact will support about 11,500 users throughout Embratel's facilities, including four call centers. Five regional sites in the country are also covered in the agreement. A total of 22 separate locations will be supported. These in turn help back-up 101 others, for a total of 151 buildings that are included in the scope of the agreement.
IBM is also expected to help Embratel architect and upgrade its IT system to maintain critical back-up operations.
The companies said most of Embratel's applications, such as electronic mail and billing, would also be included in the outsourcing managed by IBM (though highly controlled by Embratel) and with a guarantee of the most competitive prices over the life of the 10-year contract.
The project is expected to free Embratel to focus on rolling out cutting-edge telecommunications products and services for its customers.
The plan calls for IBM to manage Embratel's CPD (central site), as well as all internal networking. During the first year, the companies said, IBM will manage the services on-site at Embratel's premises. The second year, the CPD will be transferred to IBM's services megacenter in Hortolandia, near Sao Paulo.
Embratel will provide telecommunications services to IBM as part of the agreement, following a similar pact struck in 2002 between the two companies.