Swedish Post Moves to a More Flexible Model in 220 Million Euro, Six-Year IT Services Deal With IBM

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STOCKHOLM - 24 Jun 2003: Posten, Sweden's national postal service, and IBM have signed a major services agreement under which IBM will manage and enhance Posten's IT and telephony infrastructure. As part of the deal, IBM will operate one of the largest privately held networks and phone systems in Sweden.

The agreement is valued at approximately 220 million Euros over a six year period and approximately 180 people will join IBM from Posten by September 1, 2003 as part of the deal. The benefits to Posten will be cost reduction, flexibility, committed service level agreements from IBM and a simplified management that comes with just one IT and telephony supplier.
Posten completed a study about outsourcing and concluded:

The dynamic business environment in which Posten operates requires a flexible agreement. IBM offers an on demand solution that allows the client to change volumes as required in a constantly changing business.
In 2002, the executive council of Posten decided to start the procurement process for outsourcing. The areas to be outsourced included three data centers including 600 servers, enterprise computer management and help desks including 180 applications, and the whole telephony network (switchboards, call centers, land lines and mobile phones) with around 2,500 access points. The deal also extends an existing PC/LAN contract for three years.
The deal also includes among the largest Wide Area Network (WAN) in Sweden. This subcontract has been awarded to TeliaSonera. TeliaSonera will migrate the present WAN platforms of Posten, containing several nets from different suppliers, to a pure solution based upon public net infrastructure. TeliaSonera will also migrate the present telecom platforms of Posten, to a pure Centrex solution, which will include mobile workforce solutions. Finally, TeliaSonera has also taken over complete responsibility for the operation of Posten's telephone and datacom network.
"This agreement with IBM represents an important step in the company's strategic management decision to focus on our core business," says Mats Engstrand, CIO, Posten. "After a rigorous review process, it was clear that IBM stood out from the rest. IBM has the right attributes to meet our needs, enabling us to turn fixed costs into variable costs."
"Posten needs to be able to respond to the peaks and troughs in demand for their service which is why our On Demand solutions are attractive to them," said Leif Lindqvist, General Manager, IBM Global Services, IBM Nordic. "Like any other business in this economic climate, they want to reduce costs with the lowest possible business risk and outsourcing to IBM will help them to achieve this."
IBM Global Services

IBM Global Services is the world's largest information technology services and consulting provider, generating over $36 billion in 2002. Approximately 180,000 professionals serve customers in over 160 countries, providing the entire spectrum of customers' e-business needs -- from the business transformation and industry expertise of IBM Business Consulting Services to hosting, infrastructure, technology design and training services. IBM Global Services delivers integrated, flexible and resilient processes -- across companies and through business partners -- that enable customers to maximize the opportunities of an on-demand business environment.

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