IBM Announces $480 million Outsourcing Agreement with Mazda

 Tokyo 07 Oct 99 In the largest outsourcing agreement in Japanese manufacturing history, IBM Japan, Ltd. today announced that Mazda Motor Corp. will outsource most of the development and operation of its information systems to IBM Japan in a deal worth approximately $480 million over ten years.

IBM Japan will be responsible for the development, operation and maintenance of Mazda's host systems, supercomputers, 10,000 personal computers and network links, with the exception of those in research and development areas.

Mazda will utilize IBM's world-class information technology and proven application development methodologies to improve its operational processes, while at the same time strengthening its planning and strategy development functions. It wants to transform its business processes through the use of information technology to better deal with the complexities of automotive manufacturing in a global market.

To support Mazda's needs, IBM Japan will establish a wholly-owned subsidiary -- IBM Global Services Japan Chugoku Solutions Company -- which initially will employ approximately 350 persons. With the establishment of the new company, Mazda C&T, Mazda's wholly-owned information systems subsidiary, will be dissolved in March, 2000.

"This agreement will support Mazda's aim to improve operational efficiency, spur our business transformation and help link information technology more with the Mazda business strategy," said Mr. Yoichiro Furuse, senior managing director of Mazda. "IBM's proven processes and skills should strengthen Mazda's information technology function."

Mr. Takuma Otoshi, general manager of IBM Global Services Japan, said Mazda will benefit from IBM Global Services' leadership in the provision of information technology services and expertise to manufacturing industries. Mazda also will gain access to the latest research and development and e-business solutions through the agreement with IBM.

 

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