IBM has announced that it has signed a seven-year deal with Delta Air Lines to "help support (Delta's) ongoing IT needs as it restructures its operations and progresses toward emergence from bankruptcy in the first half of 2007".
Delta currently operates and maintains its own computer infrastructure, which it uses for applications such as reservations, record keeping and communications, through its unit Delta Technology. Outsourcing the task to IBM will save on costs and allow it to focus on restructuring, the airline said in a court filing.
In the case of CVS, it was actually the company's rapid growth – 55,000 US employees in two years – that prompted the deal. "This rapid growth has stretched our current systems supporting human resources transactions," V. Michael Ferdinandi, CVS SVP for Human Resources and Corporate Communications, said.
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