IBM, Qantas sign $446M IT outsourcing deal

IBM Global Services has signed a US$446 million IT outsourcing deal with Australian airline Qantas Airways Ltd.

IBM Corp. will manage the data center and other IT systems for the Sydney-based airline, the companies said in a statement released today.

Qantas' decision to outsource its IT systems will allow the airline to focus on ongoing changes in the airline industry and on its own business growth, according to the statement.

Under the terms of the 10-year deal, IBM will migrate Qantas' servers to a shared infrastructure at an IBM data center in Sydney and will manage a range of services, including help desk support, security and change management, at various locations.

Qantas will pay for services on demand, or as it uses those services, allowing the airline to significantly reduce administrative and other IT-related costs, the companies said.

The services arrangement with IBM will allow Qantas to more quickly scale its infrastructure and staff resources to respond more rapidly to customer demands and growth opportunities, according to Brendon Riley, general manager of IBM Global Services Australia and New Zealand.

"This agreement will assist Qantas in becoming an on-demand enterprise," Riley said in the statement. "It is not only IBM's data center infrastructure and variable cost model that will provide increased flexibility and efficiency to Qantas. IBM gives Qantas access to thousands of professionals with an extensive range of skills as well."

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