Posted on 06/22/2005 12:08:15 AM PDT by nickcarraway
International Business Machines Corp, the world's largest computer-services company, said it won a $1.6 billion contract from NiSource to provide technology consulting and human resources management services.
The 10-year contract starts on July 1 and includes NiSource's procurement, customer services, billing, finance and accounting operations, IBM said in a statement.
The order is a boost for IBM's services business, which had a 6 per cent increase in sales to $11.7 billion in the first quarter.
Armonk, New York-based IBM sold its personal computer unit and plans to cut 13,000 jobs mostly in Europe as it focuses on high-growth countries such as India and China and more profitable operations including services.
NiSource, the third-largest US natural gas distributor by number of customers, will cut 445 jobs while another 572 employees of the Merrillville, Indiana-based company will transfer to IBM. NiSource will have about 530 million US dollar in operating and cost savings from the contract, according to the statement.
NiSource had said in April that it was negotiating the services contract with IBM to reduce costs and focus on delivering gas. First-quarter net income at NiSource fell 3.4 percent to 206.3 million US dollar as a milder winter reduced sales of heating fuel.
Being Apple is screwing them, good they got this business.
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