Blade Watch

http://www.finextra.com/fullstory.asp?id=16630

Danish payments body Payment Business Services (PBS) has signed a seven year deal to outsource the operation and management of its IT infrastructure to IBM. Financial terms of the agreement were not disclosed.

The contract covers the operations and maintenance of PBS’s IT infrastructure, including mainframe, mid-range servers and network.

Under the agreement 71 IT staff will transfer from PBS to IBM.

This is a form of outsourcing I know a couple of banks/businesses have opted for, this way, I free up head count for 71 people, and transfer my IT from a variable cost with a budget, to a fixed service cost, no longer do I have IT people, I have an IT service which provides me with people -very cool, unsettling though for the people involved, also the day to day running can take time to settle to the new changes.

In essence, is re-labelling IT, (from a cost center, a department with headcount, HR presence etc), to a fixed cost service, like buying a printer, its the way you define it in your budget.

In this case, can I have a LaserJet printer, the cost is £583,000 a month in rental?

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