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IBM and Equifax Extend and Expand Technology Outsourcing Agreement

Strategic Insights

— 1 min read

IBM and Equifax have extended their 10-year technology outsourcing agreement, initially signed in 1993, for an additional 15 years until 2008. The new agreement represents an aggregate contractual value of approximately $900 million when combined with other existing agreements. This partnership will enable Equifax to continue to focus on its core business while leveraging IBM's global infrastructure and expertise in information technology services.

Key Takeaways:

  • The new agreement will run from 1998 to 2008, marking a significant extension of the initial 10-year contract signed in 1993.
  • The aggregate contractual value of the agreement is approximately $900 million, combining the original contract with other existing agreements.
  • IBM Global Services will manage a majority of Equifax's worldwide information technology resources, providing data-center management, network voice and data management, and business recovery services.
  • The partnership will enable Equifax to develop e-commerce offerings within its business units, leveraging IBM's expertise in this area.
  • Equifax's worldwide knowledge-based information, transaction processing, consulting, and software businesses will benefit from IBM's global infrastructure and capabilities.
  • The partnership is a natural expansion of IBM's long-term relationship with Equifax, which was one of IBM's first strategic outsourcing contracts.

Statistics:

  • 1993: Initial 10-year technology outsourcing agreement signed between IBM and Equifax.
  • 1998: New agreement extended through 2008, with an aggregate contractual value of approximately $900 million.
  • 1997: IBM Global Services reported revenues of approximately $26 billion.
  • 110,000: Number of professionals employed by IBM Global Services to help companies solve real business problems and create new business opportunities.
  • 17: Number of countries where Equifax operates.
  • 42: Number of countries where Equifax has sales.
  • 10,000: Number of employees worked by Equifax around the world.
  • 1.4 billion: Revenues for the 12 months ended March 31, 1998.

Sources:

  • Business Wire, July 13, 1998
  • IBM's press release, "IBM and Equifax Extend and Expand Technology Outsourcing Agreement"
  • Equifax's press release, "Equifax Announces Strategic Alliance with IBM Global Services"
  • IBM's website, www.ibm.com/services
  • Equifax's website, http://www.equifax.com

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