Singapore Jobs Related News: IBM to manage Singapore Airlines IT functions in 181 million US dollar deal

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IBM to manage Singapore Airlines IT functions in 181 million US dollar deal
AFP: 10/26/2004
SINGAPORE, Oct 26 (AFP) - IBM will manage the information technology (IT) infrastructure of Singapore Airlines (SIA) under a 300 million Singapore dollar (181 million US) deal signed Tuesday, the two firms announced.

The seven-year agreement comes into effect on November 18, they said in a joint statement.

"Under the agreement, IBM will manage SIA's data centre, end-user computing support service and information technology help desk," it said.

SIA announced on September 24 it was outsourcing its entire IT division but did not name the company. It also said at that time that 130 SIA staff will be laid off as a result.

The statement said that SIA staff in affected areas "have been offered the opportunity to join IBM on a package comparable in both remuneration and role."

SIA senior vice president for planning Mak Swee Wah said that by outsourcing IT functions, the airline "will meet its goal of focusing on its core business, enabling both efficient cost management and a high standard of customer service and satisfaction."

The airline forecasts savings of 15 million Singapore dollars a year from the outsourcing move.

SIA, one of the world's premier airlines and a major employer in the city-state, has also said it would shed 70 jobs in its finance division by the end of the year through outsourcing.

Most sectors of Singapore's aviation industry are undergoing major restructuring as they seek to cut costs in the face of increasing regional competition mainly from budget airlines.

10/26/2004 11:36 GMT - AFP

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