Sandvik unveils outsourcing pact with IBM

IBM and swedish enginerring group Sandvik  have entered into a five-year strategic agreement, where parts of the Sandvik IT infrastructure services will be outsourced to IBM. The value of the agreement is approximately 2 billion SEK, and over  $250 million.

Sandvik aims to become a more fast-paced, global and customer-focused company with greater synergies within IT and other selected areas.

The agreement with IBM will enable Sandvik to achieve scalability and flexibility in cost, resources and competence, in its quest to be recognised a fast-paced, global and customer-focused company. In the long-term perspective this will provide an increased cost efficiency and quality of IT services and also secure access to the right skills and competence to the Swedish giant.

''We are very satisfied to have entered this agreement with IBM and have high expectations on their ability to meet our demands,'' says Göran Kördel, CIO of Sandvik. ''This is an important step towards strengthening the internal business solution for Sandvik IT and also a vital part in Sandvik's ambition to be a globally integrated company.''

Becoming a globally integrated company is an essential transformation many companies have to perform to be able to stay in the forefront of their industry. Besides assisting multiple companies in this transformation processes, IBM has its own experience from combining its separate IT and business infrastructure into a globally integrated, open and responsive one.

''We are very delighted to continue to work closely with Sandvik,'' says Johan Sandell, general manager at IBM in Sweden. ''Our own transformation turned IBM into a higher-performing enterprise providing returns to shareholders and added value to our clients and employees. We are convinced our transformation experience will support Sandvik on a similar journey to deliver value to Sandvik's business.''