Dayton Hudson Signs $400 Million Multi-Year Services Agreement with IBM for Information Technology Support

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SOMERS, NY - 29 Mar 1999: -- Dayton Hudson Corporation, America's fourth-largest general merchandise retailer, today announced a five-year, $400 million strategic outsourcing agreement with IBM to support core IT systems for Dayton Hudson nationwide.

Under the agreement, IBM Global Services is responsible for data center operations, mainframe technical services, and mainframe database support to improve overall system stability and help control total costs of service delivery. Dayton Hudson's mainframe hosts critical applications, including its credit system. This solution will help increase productivity and deliver consistent, reliable service to merchants and shoppers.

"The outsourcing of our mainframe operations allows Dayton Hudson to focus our resources and energy on creating value-added technology tools that give us a competitive advantage in the marketplace," said Vivian Stephenson, executive vice president and chief information officer, Dayton Hudson. '"IBM is a longtime business partner of Dayton Hudson and we are pleased to have them provide additional service to support our business."

As part of this agreement, approximately 75 Dayton Hudson employees will become employees of IBM.

"We understand the importance of rock-solid service delivery in support of Dayton Hudson's business objectives," said Doug Elix, general manager, IBM Global Services - Americas. "We look forward to leveraging the capabilities of both companies to achieve those benefits for Dayton Hudson."

Dayton Hudson Corporation operates large-store general merchandise formats, including discount stores, moderate-priced promotional and traditional department stores. At the end of 1998, the company operated 1,182 stores in 41 states - including 851 Target stores, 268 Mervyn's stores, and 63 Department Stores.

IBM Global Services is the world's largest information technology services provider, with 1998 revenues of approximately $29 billion. Services is the fastest growing part of IBM, with more than 126,000 professionals operating in 160 countries. IBM Global Services integrates all of IBM's capabilities -- services, hardware, software and research -- to help companies of all sizes realize the full value of information technology. For more information visit

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