Wednesday, September 22, 2010

Jet Airways inks Rs 283 crore deal with IBM

Jet Airways, country’s largest airline in terms of market share, on Tuesday announced a deal worth $62 million (approximately Rs 283 crore) for 10 years with IBM to outsource its business transformation and information technology services.

Under the deal, IBM will absorb IT employees of the domestic airlines, said M Shivkumar, senior VP, finance of Jet Airways.“The outsourced model will help us maximise our revenues.” said Mr Shivkumar. Nearly 45 employees of a 58-member IT team will be shifted to IBM. Some will be accommodated in other sections while a few people may leave Jet.

Jet Airways will look forward to leverage IBM's domain knowledge of the global airline industry and its technology leadership to meet the group’s business transformation objectives, the company said in a statement.

The Naresh Goyal-led company, was until recently using its inhouse technology to meet IT requirements.

IBM will now support Jet Airways with IT Infrastructure and application support services, including employee transition, data centre operations, central helpdesk support, server and storage operation.

The Economic Times


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