When to Use Other People's People - ' Some Big Outsourcing Deals ' (
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Some Big Outsourcing Deals
In outsourcing deals, a company's employees often find themselves working for the consulting firm that won the contract. Here is a sample of some major deals since 2000.
Customer/Outsourcer
Fiat/IBM: ERP, e-business systems management of technology infrastructure for Italian automaker in 10-year contract. About 1,700 employees from Fiat, 870 from IBM to participate in new joint venture
Navy, Marine Corps/EDS: Development of an intranet for more than 360,000 sailors, Marines and civilians at more than 300 bases in eight-year contract. Some 40 employees accepted transfers
National Security Agency/CSC: Telephone and computer network updates for the federal agency over 10 years; 750 employees transferred
Westpac/IBM: E-business services for Australian bank over six years; 1,200 employees transferred
BAE Systems/CSC: Management of computer and networking systems, Internet service, help desk and application support for the former British Aerospace; 600 employees transferred
Sabre/EDS: Management of Sabre's information technology systems including data management, and acquisition of Sabre's IT assets and outsourcing business for another $670 million; 4,000 employees transferred
NTL/IBM: Information technology services for UK cable operator; 500 employees transferred
Sainsbury/Accenture: Modernization and management of the U.K. supermarket's information technology systems; 800 employees transferred
Sources: Company Reports, Merrill Lynch