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IBM Inks Services Deal With Boeing, In Talks With P&G

Aug 29, 2003 (07:08 AM EDT)

Read the Original Article at http://www.informationweek.com/news/showArticle.jhtml?articleID=14200032


IBM says it has won a $160 million contract to manage all voice networks for Boeing Co. and is close to signing a major services deal with Procter & Gamble.

Under its three-year deal with Boeing, IBM will provide the aerospace giant with a range of telephony services, including network management, voice-mail support, and operator services. IBM also will team with Verizon Communications to build a comprehensive voice-management system for the company.

Meanwhile, an IBM spokesman says the company is in exclusive negotiations with P&G to provide HR outsourcing services for the consumer-goods conglomerate. Analysts say the deal could be worth as much as $500 million. Under the proposal, IBM would manage payroll, benefits, and other employee services for P&G.

P&G officials weren't immediately available to comment.

In April, P&G tapped Hewlett-Packard to manage a host of technology operations, including infrastructure, data-center, desktop and user support, network management, and applications under a $3 billion, 10-year deal. An HP spokesman says the company didn't compete for the HR contract.

EDS had been close to a comprehensive $8 billion IT-services deal with Procter & Gamble late last year, but P&G scuttled the talks because of concerns about EDS's financial stability.