Blade Watch

IBM has announced it has signed a contract to supply business process outsourcing services, more and more we’re seeing business use outsourcing as a vehicle to reduce costs, imrpove service or as a vehicle for them to focus on their core business and have someone delivery their back office activities.

I wonder how we’ll see elements of the IT develop in this context? Would the concept of virtual clouds be the ‘vehicle’ we can use to outsource elements of the IT infrastructure, the concepts that a business guy had said, “…get someone else to do the boring stuff, have IT focus on delivery and strategy…”.

The interesting thing with this is the opportunities it creates, both in terms of the actual delivery of the service, coupled with the concept of ongoing service improvement which is needed as part of the support function, related to this I wonder is how often it can be a vehicle to get investment where it wasn’t previously available? See the announcement below:

ARMONK, N.Y. – 20 May 2009: IBM (NYSE: IBM) today announced it has signed a seven-year, $11.3 million business process outsourcing services agreement with Lam Research Corporation, a major supplier of semiconductor wafer fabrication equipment and services.

Through the agreement, IBM will continue to provide Lam Research with Accounts Payable, Cash Receipt Applications, Systems Invoicing, Payroll Administration, General Accounting and Account Reconciliation services. Key to IBM being selected for this deal was its successful history with Lam Research in delivering quality services at a competitive price.

“IBM provides a well-rounded, cost effective global solution that aligns closely with our business goals,” said John Theler, Lam Research’s corporate controller.

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