Kao and IBM Japan Sign Strategic Outsourcing Contract

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Tokyo - 29 Sep 1998: ... Kao Corporation and IBM Japan, Ltd. today announced the signing of a strategic outsourcing contract, which will provide Kao with increased efficiencies, 365-day operation and improved delivery quality of Kao's host computer system.

The contract duration is almost seven years, and includes operation, management and maintenance of Kao's host computer system. The agreement will bring new efficiencies to the management of Kao's administrative operations, which rely on large host computers in two computer centers. The operations of the two centers will be transferred to IBM Japan's Computer Center in early 1999, and the outsourcing services will be provided to Kao by IBM Global Services, the world's leader in such services.

Kao's Information System Division will continue to handle the planning of new information systems and the development and maintenance of application programs.

Kao decision to outsource to IBM Global Services is part of its IT management strategy to concentrate its management resources on core operations while aiming for information system efficiencies, including reduced costs, provide operations 365 days-a-year, improve the quality of its operations, and put in place a system to deal with crisis situations such as earthquakes.

IBM Japan's Computer Center offers earthquake-resistant facilities and continuous operation, as well as the skills and expertise it has built up over the years in systems operation, management, and maintenance.

Mr Takuma Otoshi, General Manager of IBM Global Services in Japan said "Organizations in Japan and around the world are increasingly using strategic outsourcing as a competitive tool, which allows them to maintain focus on their core business, have access to the latest technology, while providing increased efficiencies and service levels."

The Kao Corporation, which has been in business for over a century, is a Japanese-based global company with operations in 27 countries in Asia, North America and Europe. Kao is one of the leading provider of a range of consumer goods including personal care, cosmetics, laundry and cleaning products, as well being a manufacturer of high-quality chemical products.

With 1997 revenues of approximately $26 billion, IBM Global Services is the world's largest information technology services provider. IBM's fastest-growing business segment has an unsurpassed breadth of capabilities, with more than 116,000 professionals helping companies of all sizes solve real business problems and create new business opportunities. For more information on IBM Global Services, visit http://www.ibm.com/services.

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