Korean Air Renews Strategic Outsourcing Contract With IBM for Ten Years

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SEOUL, KOREA - 14 Jan 2009: IBM (NYSE: IBM) in Korea announced that it has renewed a ten-year outsourcing agreement with Korean Air, one of the leading airlines in Asia Pacific. Under the agreement, signed in December 2008, IBM will manage the data center for Korean Air for the next ten years.

Since 1998, IBM has been providing IT management services to Korean Air which covers System z, server and storage, as well as data center and disaster recovery center operations. Due to the stable operations of the IT infrastructure managed by IBM, Korean Air has been able to focus on the core business areas in the airline industry and improve the efficiency of its operations and customer service.

IBM will provide Application Lifecycle Management infrastructure services for a better application management and SOA runtime environment. This will help integrate Korean Air's applications in a smarter way and start implementing Maximo software in Korean Air for intelligent infrastructure management services.

Korean Air's outsourcing agreement with IBM has been widely acknowledged by industry experts in Korea and around the world as a successful IT outsourcing case. The company decided to renew its contract with IBM after the review and evaluation of services from IBM and other vendors. IBM was selected because of its high-quality service, industry expertise and cost effectiveness of IBM Korea's services.

Based on the understanding and experiences that it has accumulated over the last ten years, IBM plans to extend its outsourcing services to focus on generating business value for Korean Air by providing effective IT services through an integrated management system. It will provide a company-wide on-demand environment which covers application development, highly secure and flexible IT infrastructure services and quality management of business services through end-to-end service management.

Sang-man Lee, Chief Information Officer, Korean Air, said, "Over the last ten years, IBM Korea has been providing stable IT system operations and management services. We have high expectations that IBM Korea will continue to deliver IT services designed to improve the business value of Korean Air, through reliable operations management."

Won-jong Kim, IBM Korea General Manager, Global Technology Services, said, "The new outsourcing services contract with Korean Air marks a turning point in the history of IT outsourcing in Korea as we will extend beyond the current services and focus on providing outsourcing services that can enhance the business value of Korean Air, based on the innovative competencies of IBM."

About Korean AirFor more information about Korean Air, visit www.koreanair.com.

About IBMFor more information about IBM, visit www.ibm.com/services.

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