IBM wins new procurement outsourcing deal

26 March 2006
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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.

SMmar2006

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