IBM Enters into a Long-term Agreement with Sandvik

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Stockholm, Sweden - 03 Jul 2012: IBM (NYSE: IBM) and Sandvik, a world-leading high-technology engineering group, today announce a five-year strategic agreement, where parts of the Sandvik IT infrastructure services will be outsourced to IBM. The value of the agreement is approximately 2 billion SEK, and more than $250 million USD.

Sandvik aims to become a more fast-paced, global and customer-focused company with greater synergies within IT and other selected areas. This agreement will enable scalability and flexibility in cost, resources and competence for Sandvik. In the long-term perspective this will provide an increased cost efficiency and quality of IT services and also secure access to the right skills and competence. 

“We are very satisfied to have entered this agreement with IBM and have high expectations on their ability to meet our demands,” says Göran Kördel, CIO of Sandvik. “This is an important step towards strengthening the internal business solution for Sandvik IT and also a vital part in Sandvik’s ambition to be a globally integrated company.” 

Becoming a globally integrated company is an essential transformation many companies have to perform to be able to stay in the forefront of their industry. Besides assisting multiple companies in this transformation processes, IBM has its own experience from combining its separate IT and business infrastructure into a globally integrated, open and responsive one. 

“We are very delighted to continue to work closely with Sandvik,” says Johan Sandell, General Manager at IBM in Sweden. “Our own transformation turned IBM into a higher-performing enterprise providing returns to shareholders and added value to our clients and employees. We are convinced our transformation experience will support Sandvik on a similar journey to deliver value to Sandvik's business.” 

The services in scope for this agreement are ‘data center services’ and ‘workplace’.Data center services’ includes the operation of all server platforms including hardware, application platform software and facilities where servers are placed. ‘Workplace’ includes all services to manage office PCs as well as messaging, collaboration, standard applications and second-line user support. All tasks within ‘workplace’ and ‘data center services’ will be performed by IBM. Under the terms of this agreement IBM will offer employment to Sandvik's resources currently working in these areas. 

“A successful transition of both employees and technology to IBM is designed to not only enhance the security of Sandvik's business operations, but also to provide a unique opportunity for Sandvik's highly skilled employees to continue their professional career, supporting both Sandvik and other IBM clients,” says Yvonne Andersson, Strategic Outsourcing Country Executive at IBM in Sweden. 

The contract was signed in the end of the second quarter of 2012. 

IBM is an industry pioneer and has deep and broad experience of providing outsourcing services to companies all over the world. IBM also has exceptional experience of playing the role of a strategic partner - one that will bring industry thought leadership to the table and proactively contributes to customers' business and IT strategy. IBM has one of the largest global infrastructures, which has led to economies of scale that the company passes on to customers. In addition, IBM has created and can leverage world-class methods, tools, processes and intellectual capital to create high service levels, which has led IBM to become one of the most respected groups of IT skills in the industry.

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