AstraZeneca signs IT out-sourcing deal with IBM

AstraZeneca has signed an agreement whereby it will outsource most ofits information technology operations to IBM, in a deal worth $1.7 billion over seven years. As part of the agreement, 1,200 AstraZeneca staff in the UK, the USA and Sweden will transfer to IBM, which will provide a wide range of services in areas such as PC management, network and communications services (including e-mail), and computer operations support. The Anglo-Swedish firm noted that it will still retain control of its IT technical strategy and the development and support of its application systems.

Jon Symonds, AstraZeneca's chief financial officer, said the partnership will sharpen the firm's focus in areas such as e-business and informatics in R&D. He added that once the deal is finalized, the link-up with IBM will "provide better opportunities for personal development for these IT professionals, as well as significant cost savings."