AZ and IBM sign USD 1.4bn global strategic IT outsourcing agreement

AstraZeneca (AZ) and IBM have signed a USD 1.4bn, seven-year global strategic IT outsourcing agreement.

The July deal renews and expands on the scope of an existing contract and covers the provision of IT infrastructure services to 60 countries. It includes services to additional functions within AZ, the UK's second-largest pharmaceutical company.

IBM will provide a single global technical infrastructure, managing IT services for AZ across its global organisation. The deal includes server and storage hosting, service desks, PC management, network and communications services, including e-mail, and computer operations support.

AZ will retain control of its overall IT strategy and the development and support of its application systems.

Richard Williams, Chief Information Officer of AZ, said, "This innovative agreement with IBM will enable AZ to deliver greater value to the business by providing consistent infrastructure services globally, enabling a faster and more efficient rollout of new technology, with improved levels of service.î

"Leveraging IBM's global delivery capabilities and economies of scale, will allow AZ to focus its efforts on adding value to its scientific, commercial and supply operations, thereby helping the Company to deliver more medicines that make a meaningful difference to patients. In allowing IBM greater autonomy on methods of delivery, the agreement will result in cost efficiencies when compared with running in-house systems," added Williams

Doug Elix, senior vice-president of IBM, said: "IBM will marshal its global resources to provide a flexible and agile infrastructure enabling AZ to continue implementing its plans to grow and lead in the pharmaceutical industry. The trust we have built over the past seven years will help IBM and AZ break new ground in transformational services in the next seven."