IBM to Enhance Its Supply Chain BTO Offering

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ARMONK, NY - 08 Feb 2006: IBM today announced that it will strengthen its Business Transformation Outsourcing (BTO) capabilities in the $23.5 billion market for supply chain optimization and management services through the acquisition of Viacore, Inc., a leading provider of business process integration solutions for real-time supply chain visibility. Financial terms of the acquisition were not disclosed.

Last year IBM introduced the world's first supply-chain BTO capability, tapping into its rich internal supply chain experience, consulting expertise, and analytics technologies, to help businesses operate and manage end-to-end supply chain processes. The Viacore acquisition expands IBM's capabilities, specifically in the electronics and retail industries, by enabling a client and its supply chain partners to easily exchange information on capacity, inventory, production, sourcing, delivery, forecasting, and planning in real-time. This ability enables communities of supply chain partners to reduce costs, improve responsiveness to customers and forge more tightly integrated relationships.

"Building a responsive, integrated supply chain that operates in real-time with suppliers, partners and customers, is a highly complex proposition that requires a unique combination of consulting, technology and services skills," said Bill Ciemny, Vice President for Global Supply Chain BTO Solutions at IBM. "With the acquisition of Viacore, IBM adds to an already well-established portfolio consisting of internal and external partner capabilities that offers clients the opportunity to outsource their supply chain, while they continue to focus on innovation and their core competencies."

"Viacore's business process integration solutions have helped our customers create dynamic supply chains that deliver significant cost, responsiveness and productivity improvements," said Fadi Chehadé, CEO of Viacore. "We've enjoyed a collaborative sales and marketing relationship with IBM for several years, and our combined efforts will create a stronger value proposition for companies looking to develop a competitive advantage through supply-chain Business Transformation Outsourcing."

IBM's Supply Chain BTO offering helps clients optimize business processes from procurement and logistics to strategy and planning. IBM has the world's largest supply-chain management consulting practice, with over 8,000 experts. These consultants draw on the collective knowledge of IBM's 15,000 internal supply chain experts across the company to deliver BTO services to clients.

Business Transformation Outsourcing (BTO) transforms client organizations and delivers enterprise optimization through innovative business and technology approaches. Using its global network of expertise, industry-leading consulting methodologies, research and engineering capabilities, advanced technologies and analytical tools, IBM's BTO services standardize, streamline and improve business processes. IBM BTO services transform key business functions including Finance and Accounting, Customer Relationship Management, Supply Chain, Procurement and Human Resources. IBM provides BTO services to many of the world's leading organizations, and over the last four years has made a number of strategic acquisitions and investments to expand and strengthen its capabilities, including the acquisitions of PwC Consulting, Daksh eServices, Liberty Insurance Services Corp., Maersk Data, Key MRO, Equitant and Healthlink.

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