27 March 2006 | Rebecca Ellinor
US electronics manufacturer Solectron has outsourced the management of its $1.2 billion annual indirect procurement services bill to IBM.
The value of the long-term deal has not been disclosed, but it will cover temporary contract services, office equipment, utilities and telecommunication across 17 countries.
IBM will install its own procure-to-pay system to manage the indirect spend.
Perry Mulligan, chief procurement officer at Solectron, said in a statement: "The savings we expect from this contract will contribute to both operational and process innovation and simplification, which improves services to our customers and suppliers."
It is the latest in a string of high-profile outsourcing deals won by IBM, which also recently announced contracts with global beauty firm Coty and for Unilever's North American operations.