Return to business news headlinesArticle date: Tue, 19 Apr 2011 10:22 GMT
Global pharmaceuticals giant AstraZeneca, is set go its separate ways from IBM, cutting the contract early, according to reports.
The $1.4 billion deal, signed in July 2007, was supposed to be a seven-year arrangement, but now IBM is to leave AstraZeneca in 12-15 months, according to multiple sources familiar with the matter. AstraZeneca is said to have made its plans known on April 8, after several months of negotiations with IBM.
Last November, the head of AstraZeneca's IT procurement division said the company was attempting to improve relationships with suppliers and have "tough conversations" with them. AstraZeneca also outsources to Cognizant, Infosys, Genpact and BT.
Under IBM's agreement, the supplier has provided IT infrastructure management services to AstraZeneca locations in 60 countries. The services include server and storage hosting, desktop management, network maintenance and management and help desk support for AstraZeneca's 61,000 employees.
According to sources, AstraZeneca has been dissatisfied with IBM for a long time. Several IBM competitors are now gearing up to compete for the $200 million a year contract and replace IBM at the pharma giant.
"Of course we are interested, I think every player on the market is," said a high-ranking executive at an IBM competitor, who spoke on the condition of anonymity.
The 2007 agreement was seen as a key win for IBM's services unit, given that it came at a time when an increasing number of large pharmaceutical companies where tapping offshore vendors for their IT needs.
AstraZeneca was created in 1999 after a merger of Swedish pharmaceutical company Astra and the Zeneca Group of the U.K. It is the world's seventh-largest pharmaceutical company measured by revenue, which was $33.3 billion in 2010.
IBM and AstraZeneca declined to comment.
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Tuesday, April 19, 2011
IBM to Lose Million Pound Deal with AstraZeneca
via ukfastnews.co.uk
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4 comments:
IBM service on the infrastructure side at AZ is pathetic - sub par, inept offshore talent coupled with seriously overpaid paper pushers onshore who need to keep the billable hours rolling in.
It's a wonder that IBM is still in business, and touted among the best run companies by editors at business magazines. Hats off to IBM sales and marketing.
Amen to the above. I contract to nIBM at AZ, hate IBM, couldn't give a sh*t that they have lost the account. They treat me likea piece of dirt so why should I care about them?
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